Accounting for Accounting Changes and Errors Listed below are various types of accounting changes and errors.

______ 1. Change from FIFO to average cost inventory method.

______ 2. Change due to overstatement of inventory.

______ 3. Change from sum-of-the-years’-digits to straight-line method of depreciation.

______ 4. Change from presenting unconsolidated to consolidated financial statements.

______ 5. Change from LIFO to FIFO inventory method.

______ 6. Change in the rate used to compute warranty costs.

______ 7. Change from an unacceptable accounting principle to an acceptable accounting principle.

______ 8. Change in a patent’s amortization period.

______ 9. Change from completed-contract to percentage-of-completion method on construction contracts.

______ 10. Change in a plant asset’s salvage value.

For each change or error, indicate how it would be accounted for using the following code letters:

(a) Accounted for prospectively.

(b) Accounted for retrospectively.

(c) Neither of the above.