Question
Determine whether the items below is a: A.change in accounting policy B.change in accounting estimate, or C.error correction 1.Reduction in remaining estimated service life of
Determine whether the items below is a:
A.change in accounting policy
B.change in accounting estimate, or
C.error correction
1.Reduction in remaining estimated service life of truck.
2.Expensed a truck when purchased.
3.Write-down of inventory due to obsolescence.
4.Receipt of damages won in court suit begun three years ago.
5.A company is preparing to become a corporation and sell stock to the public. At this time, it changed from accelerated to straight-line depreciation.
6.Change from FIFO inventory to LIFO; recalculations are practicable.
7.Increase in bad debt estimate from 2% to 3% of sales.
8.Change from LIFO to FIFO.
9.Change from individual statements to consolidated statements.
10.Change from percentage-of-sales to percentage-of-receivables method of bad debt estimation.
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