Listed below are various types of accounting changes and errors. For each change or error, indicate how it would be accounted for using the following code: 1. Change in a plant asset’s salvage value. select a type of accounting approach 2. Change due to overstatement of inventory. select a type of accounting approach 3. Change from sum-of-the-years’-digits to straight-line method of depreciation. select a type of accounting approach 4. Change from presenting unconsolidated to consolidated financial statements. select a type of accounting approach 5. Change from LIFO to FIFO inventory method. select a type of accounting approach 6. Change in the rate used to compute warranty costs. select a type of accounting approach 7. Change from an unacceptable accounting principle to an acceptable accounting principle. select a type of accounting approach 8. Change in a patent’s amortization period. select a type of accounting approach 9. Change from completed-contract to percentage-of-completion method on construction contracts. select a type of accounting approach 10. Change from FIFO to average-cost inventory method. select a type of accounting approach

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 6.31EX: Asset turnover The Home Depot reported the following data (in millions) in its recent financial...

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Exercise 22-10

Listed below are various types of accounting changes and errors.

For each change or error, indicate how it would be accounted for using the following code:

1.	Change in a plant asset’s salvage value.	select a type of accounting approach
2.	Change due to overstatement of inventory.	select a type of accounting approach
3.	Change from sum-of-the-years’-digits to straight-line method of depreciation.	select a type of accounting approach
4.	Change from presenting unconsolidated to consolidated financial statements.	select a type of accounting approach
5.	Change from LIFO to FIFO inventory method.	select a type of accounting approach
6.	Change in the rate used to compute warranty costs.	select a type of accounting approach
7.	Change from an unacceptable accounting principle to an acceptable accounting principle.	select a type of accounting approach
8.	Change in a patent’s amortization period.	select a type of accounting approach
9.	Change from completed-contract to percentage-of-completion method on construction contracts.	select a type of accounting approach
10.	Change from FIFO to average-cost inventory method.	select a type of accounting approach

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