a. Change in accounting principle. b. Change in accounting estimate. c. Error correction. Instructions 1. 2. In the spaces above, describe how each item is treated. On the lines below, enter the letter from above that indicates the type of change for each situation 1. Change due to charging a new asset directly to an expense account. 2. Change from FIFO to LIFO inventory procedures. 3. Change due to failure to recognize an accrued (uncollected) revenue. 4. Change in amortization period for an intangible asset. 5. Change in the loss rate on estimated warranty costs 6. Change due to failure to recognize and accrue income 7. Change from an unacceptable to an acceptable accounting principle. 8. Change due to failure to recognize a prepaid asset 9. Change from straight-line to sum-of-the-years-digits method of depreciation. 10. Change from one acceptable principle to another acceptable principle. 11 . Change due to understatement of inventory. 12. Change in expected recovery of an account receivable