Listed below are various types of accounting changes and errors. ________ 1. Change in a plant asset's salvage value. ________ 2. Change due to overstatement of inventory. ________ 3. Change from sum-of-the-years'-digits to straight-line method of depreciation. ________ 4. Change from presenting unconsolidated to consolidated financial statements. ________ 5. Change from LIFO to FIFO inventory method. ________ 6. Change in the rate used to compute warranty costs. ________ 7. Change from an unacceptable accounting principle to an acceptable accounting principle. ________ 8. Change in a patent's amortization period. ________ 9. Change from completed-contract to percentage-of-completion method on construction contracts. ________ 10. Change from FIFO to average-cost inventory method. Instructions For each change or error, indicate how it would be accounted for using the following code letters: a. Accounted for prospectively. b. Accounted for retrospectively. c. Neither of the above.
Listed below are various types of accounting changes and errors.
- ________ 1. Change in a plant asset's salvage value.
- ________ 2. Change due to overstatement of inventory.
- ________ 3. Change from sum-of-the-years'-digits to straight-line method of depreciation.
- ________ 4. Change from presenting unconsolidated to consolidated financial statements.
- ________ 5. Change from LIFO to FIFO inventory method.
- ________ 6. Change in the rate used to compute warranty costs.
- ________ 7. Change from an unacceptable accounting principle to an acceptable accounting principle.
- ________ 8. Change in a patent's amortization period.
- ________ 9. Change from completed-contract to percentage-of-completion method on construction contracts.
- ________ 10. Change from FIFO to average-cost inventory method.
Instructions
For each change or error, indicate how it would be accounted for using the following code letters:
a. Accounted for prospectively.
b. Accounted for retrospectively.
c. Neither of the above.
Expert Answer
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