options:

Type: policy, estimate, accounting error

approach:prospective,retrospective no restatement,retrospective with restatement

Analyze each case and choose the appropriate type of change and approach. a) New accounting principle required by GAAP. Type: Approach: select answer select answer b) Straight-line depreciation for the past three years has been calculated with no deduction for residual value because of an oversight Type: Approach: select answer select answer c) Changed from revenue recognition at cash collection to revenue recognition at point of delivery to conform to long-estimated industry standard. Type: Approach: select answer select answer d) Fair value of an available-for-sale investment was used in prior year but was incorrect. An estimate of fair value had to be made in the prior year because the security was not frequently traded. Type: Approach: select answer select answer e) Changed from straight-line depreciation to units-of-production depreciation to conform to industry practice. Type: Approach: select answer select answer f) Balance of deferred development costs is deemed worthless, and no further development costs will be deferred because of technological changes Type: Approach: select answer select answer g) Straight-line depreciation for the past three years has been calculated with no deduction for residual value because none was expected, management now believes a residual value of 10% of original cost is appropriate. Type: Approach: select answer select answer h) Changed from revenue recognition at cash collection to revenue recognition at point of delivery because of a marked improvement in the creditworthiness of the customer. Type: Approach: select answer select