Accounting Changes & Correction of Errors

A. List and describe 3 accounting changes. Give an example of each change.

Describe how each change should be accounted for in the financial statements.

B. What is an error? Give an example. Describe the ways errors can be corrected and accounted for in the financial statements.

C.Define the concept of materiality. Give 2 examples and clearly explain why you think that they are material.