During Year 2, Dale Corp. made the following U. S. GAAP accounting changes: Method used in Year 1 Method used in Year 2 After-tax effect Sum-of-the-years' digits Straightline $30,000 depreciation depreciation Last, first-out First-in, first-out 98,000 for inventory valuation for inventory valuation What amount should be shown in the Year 2 retained earnings statement as an adjustment to the beginning balance?

Insurance companies have internal controls in place to protect assets, monitor the accuracy of accounting records and encourage operational efficiencies and adherence to policies. these internal controls are generally of two types: administrative controls and accounting controls. administrative controls are the policies and procedures that guide the daily actions of employees. accounting controls are the policies and procedures that delineate authorizations of financial transactions that are done, safeguard assets, and provide reports on the company’s financial status in a reliable and timely manner. internal controls should include both preventative and detective controls. the purpose of preventative controls is to stop problems and errors before they occur. detective controls identify problems after they have occurred. preventative controls are usually more effective at reducing problems, but they also tend to be more expensive. internal controls must be flexible to adjust for changes in laws and regulations in addition to adding new products or modifying current ones. companies must also do regular analyses to ensure that the benefits of implementing the controls are worth their costs. when concerned about paying unwarranted insurance claims which type of control would be useful?