Each of the statements below violates a convention in accounting. State which of the following accounting conventions is violated: comparability and consistency, materiality, conservatism, full disclosure, or cost-benefit.

1. A series of reports that are time-consuming and expensive to prepare is presented to the board of directors each month even though the reports are never used.

2. A company changes its method of accounting for depreciation.

3. The company in 2 does not indicate in the financial statements that the method of depreciation was changed, nor does it specify the effect of the change on net income.

4. A new office building next to the factory is debited to the Factory account because it represents a fairly small dollar amount in relation to the factory.

5. The asset account for a pickup truck still used in the business is written down to what the truck could be sold for even though the carrying value under conventional depreciation methods is higher. E-2