Describe the effect of each of the following:
a. Depreciation is changed from the straight-line method to an accelerated method.
b. Depreciation is changed from an accelerated method to the straight-line method.
c. Income on construction contracts that had been reported on a completed-contract basis is now reported on the percentage-of- completion basis.
d. The valuation of inventories is changed from a FIFO to a LIFO basis.
e. It is determined that warranty expenses in prior years should have been 5% of sales instead of 4%.
f. The valuation of inventories is changed from a LIFO to a FIFO basis.
g. Your accounts receivable clerk has learned that a major customer has declared bankruptcy.
h. Your patent lawyer informs you that your rival has perfected and patented a new invention making your product obsolete.