Chapter 22 Quiz - 1 The four types of accounting changes...

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1.  The four types of accounting changes, including error correction, are: Code a. Change in accounting principle.  b. Change in accounting estimate. c. Change in reporting entity. d. Error correction.Instructions: Following are a  series of situations. You are to enter a code letter to the left to indicate the type of change. A. Change in accounting principle. B. Change in accounting estimate. C. Change in reporting entity. D. Error correction. Change from presenting nonconsolidated to consolidated financial statements. Change due to charging a new asset directly to an expense account. Change due to failure to record depreciation in a previous period. Change from FIFO to LIFO inventory procedures. Change due to failure to recognize an accrued (uncollected) revenue. Change in amortization period for an intangible asset. Changing the companies included in combined financial statements. Change in the loss rate on warranty costs. Change in residual value of a depreciable plant asset. Change from an unacceptable to an acceptable accounting principle. Change due to failure to recognize a prepaid asset. Change from straight-line to sum-of-the-years'-digits method of depreciation. Change in life of a depreciable plant asset. Change from one acceptable principle to another acceptable principle. Change due to understatement of inventory. Points  Earned:  15.0/15.0  Correct  Answer(s): Change in reporting entity. :  Change from presenting nonconsolidated to consolidated financial statements. , Error correction. : Change due to charging a new asset directly to an  expense account., Error correction. : Change due to failure to record depreciation in a previous 
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period., Change in accounting principle. : Change from FIFO to LIFO inventory procedures., 
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