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.InstructionsFor 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.

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Asked Jan 24, 2020
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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.

 

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