A change in depreciation method is a______. Select one: a. change in accounting standard b. change in accounting estimate c. change in accounting method d. change in accounting policy

Which of the following is not an example of a change in accounting principle? Multiple Choice A change to the equity method of accounting for investments. A change in the useful life of a depreciable asset. A change from LIFO to FIFO for inventory costing. A change to the full costing method in the extractive industries.

Which limitation of an income statement occurs when one company uses an accelerated depreciation method while another company uses straight-line depreciation? O Companies omit from the income statement items they cannot measure reliably. O Income measurement involves judgment. O Income numbers are affected by the accounting methods employed. All of these answer choices are correct.

i Scenarios - a. Company A increases the allowance for doubtful accounts (ADA). Using the old estimate, ADA would have been $40,000. The new estimate is $45,000. X b. Company B omitted to record an invoice for a(n) $8,000 sale made on credit at the end of the previous year and incorrectly recorded the sale in the current year. The related inventory sold has been accounted for. c. Company C changes its revenue recognition to a more conservative policy. The result is a decrease in prior-year revenue by $3,000 and a decrease in current-year revenue by $4,000 relative to the amounts under the old policy.