Matching accounting changes to situations. The four types of accounting changes, including error correction, are: Code a. Change in accounting principle. b. Change in accounting estimate. c. Change in reporting entity. d. Error correction. Instructions Following are a series of situations. You are to enter a code letter to the left to indicate the type of change. 1. Change from presenting nonconsolidated to consolidated financial statements. 2. Change due to charging a new asset directly to an expense account. 3. Change from expensing to capitalizing certain costs, due to a change in periods benefited. 4. Change from FIFO to LIFO inventory procedures. 5. Change due to failure to recognize an accrued (uncollected) revenue. 6. Change in amortization period for an intangible asset. 7. Changing the companies included in combined financial statements. 8. Change in the loss rate on warranty costs. 9. Change due to failure to recognize and accrue income. 10. Change in residual value of a depreciable plant asset. 11. Change from an unacceptable to an acceptable accounting principle. 12. Change in both estimate and acceptable accounting principles. 13. Change due to failure to recognize a prepaid asset. 14. Change from straight-line to sum-of-the-years'-digits method of depreciation. 15. Change in life of a depreciable plant asset. 16. Change from one acceptable principle to another acceptable principle. 17. Change due to understatement of inventory. 18. Change in expected recovery of an account receivable