Need assistance with Q14, details please! Chapter 22 Accounting Changes Identify

Question

Need assistance with Q14, details please!
Chapter 22 Accounting Changes Identify which ofthe following are a. Change in accounting principle. b. Change in accounting estimate. c. Error correction. O14 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.

Explanation / Answer

Change in from straight line to sum of digits method of depreciation is change in accounting estimates that is b.

The change in accounting estimate is adjustment in the carrying amount of an asset or liability or the amount of periodic consumption of asset , so with the change in depreciation method the carrying amount is adjusted and the amount of periodic concumption is changed so it is change in accounting estimates.

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