A company decided to change its depreciation method for its financial statements from

$6$

double declining balance method to the straight line method. What type of change is this and how does GAAP require you handle the change when preparing the financial statements?

Type of Change

a$.$ Change in Principles

b$.$ Error

c$.$ Change in Principles

d$.$ Change in Estimate

e$.$ Change in Estimate

Method to Handle

Retrospective Application Method

Current and Prospective Method

Cumulative Effect Method

Retrospective Application Method

Current and Prospective Method

A company decided to change from using the LCM on individual inventory items to using LCM on selected inventory groups? What type of change is this and how does GAAP require you handle the change when preparing the financial statements?

$\backslash$table$[[,$Type of Change,Method to Handle$],[$a$.,$Change in Principles,Retrospective Application Method$],[$b$.,$Error,Restatement Method$],[$c$.,$Change in Principles,Current and Prospective Method$],[$d$.,$Change in Estimate,Retrospective Application Method$],[$e$.,$Change in Estimate,Current and Prospective Method$]]$

A company discovered that Depreciation Expense had somehow been left out of last year's Income Statement? What type of change is this and how does GAAP require you handle the change when preparing the financial statements?

Type of Change

a$.$ Change in Principles

b$.$ Error

c$.$ Change in Principles

d$.$ Change in Estimate

e$.$ Error

Method to Handle

Retrospective Application Method

Restatement Method

Current and Prospective Method

Retrospective Application Method

Current and Prospective Method

An auditor for a company has informed them that they will need to change from an unacceptable accounting principle per GAAP to an acceptable accounting principle?

What type of change is this and how does GAAP require you handle the change when preparing the financial statements?

Type of Change

a$.$ Change in Principles

b$.$ Error

c$.$ Change in Principles

d$.$ Change in Estimate

e$.$ Error

Method to Handle

Retrospective Application Method

Restatement Method

Current and Prospective Method

Retrospective Application Method

Current and Prospective Method