**Accounting Changes: Identification Exercise**For each of the following items, indicate the type of accounting change:**(a1)**(a) Change from the straight-line method of depreciation to the sum-of-the-years'-digits method (b) Change from the cash basis to the accrual basis of accounting (c) Change from FIFO (First-In, First-Out) to LIFO (Last-In, First-Out) method for inventory valuation purposes (retrospective application impractical) (d) Change from presentation of statements of individual companies to presentation of consolidated statements (e) Change due to failure to record depreciation in a previous period (f) Change in the realizability of certain receivables (g) Change from LIFO to FIFO method for inventory valuation purposes **Options for Selection:**- Change in accounting estimate- Change in accounting entity- Change in accounting principle- Correction of an error*Interactive Elements:* - Dropdown menus for each item allowing selection from the above options.- "Save for Later" button to save progress.- "Submit Answer" button for evaluation.*Note:* Each question requires careful consideration of the nature of changes or corrections being described, and the correct classification of the type of accounting change.

The accounting change is generally a change in accounting principle, change in accounting estimate,…

For each of the following items, indicate the type of accounting change. (a1) (a) (b) (c) (d) (e) (f) (g) Change from the straight-line method of depreciation to the sum-of-the-years-digits Change from the cash basis to the accrual basis of accounting Change from FIFO to LIFO method for inventory valuation purposes (retrospective application impractical) Change from presentation of statements of individual companies to presentation of consolidated statements Change due to failure to record depreciation in a previous period Change in the realizability of certain receivables Change from LIFO to FIFO method for inventory valuation purposes Save for Later Change in accounting estimate Change in accounting entity Change in accounting principle Correction of an error Attempts: 0 of 1 used Submit Answer

For each of the following items, indicate the type of accounting change. (a1) (a) (b) (c) (d) (e) (f) (g) Change from the straight-line method of depreciation to the sum-of-the-years-digits Change from the cash basis to the accrual basis of accounting Change from FIFO to LIFO method for inventory valuation purposes (retrospective application impractical) Change from presentation of statements of individual companies to presentation of consolidated statements Change due to failure to record depreciation in a previous period Change in the realizability of certain receivables Change from LIFO to FIFO method for inventory valuation purposes Save for Later Change in accounting estimate Change in accounting entity Change in accounting principle Correction of an error Attempts: 0 of 1 used Submit Answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

**Accounting Changes: Identification Exercise**

For each of the following items, indicate the type of accounting change:

**(a1)**

(a) Change from the straight-line method of depreciation to the sum-of-the-years'-digits method
(b) Change from the cash basis to the accrual basis of accounting
(c) Change from FIFO (First-In, First-Out) to LIFO (Last-In, First-Out) method for inventory valuation purposes (retrospective application impractical)
(d) Change from presentation of statements of individual companies to presentation of consolidated statements
(e) Change due to failure to record depreciation in a previous period
(f) Change in the realizability of certain receivables
(g) Change from LIFO to FIFO method for inventory valuation purposes

**Options for Selection:**

- Change in accounting estimate
- Change in accounting entity
- Change in accounting principle
- Correction of an error

*Interactive Elements:*
- Dropdown menus for each item allowing selection from the above options.
- "Save for Later" button to save progress.
- "Submit Answer" button for evaluation.

*Note:* Each question requires careful consideration of the nature of changes or corrections being described, and the correct classification of the type of accounting change.

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