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Social ScienceListed 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.
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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Accounting
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