Hi, please help me answer these three questions and a short explanation why that was the correct answer. Greatly appreciated!

Which of the following changes is accounted for on a prospective basis?

a. change from FIFO to average method of inventory cost formula

b. change from PFRS for SMEs to full PFRSs

c. change from the percentage of receivables to the aging of receivables method of determining uncollectible accounts

d. voluntary change in accounting policy

The following list describes some situations that occur in accounting. Which of the following does not involve a correction of an error?

a. change from recording all research and development costs as an asset and amortizing them over 30 years to expensing them in the period of expenditure

b. change in the useful life of a machine because it had mistakenly been classified as a truck. The firm depreciates trucks over a four-year useful life and machinery over a ten-year useful life

c. change in depreciation expense because the useful life of several assets was changed. They were wearing out faster than assumed

d. charge in 20x1 net income because of an arithmetic error in recording interest expense

Which of the following correctly relate to the effects of failure to recognize adjustments? Failure to Recognize Effect on profit Effect on statement of financial position

I. Consumption of the benefits of an asset Understates profit Overstates assets Overstates retained earnings

II. Earning of previously unearned revenues Understates profit Overstates liabilities Understates retained earnings

III. Accrual of assets Understates profit Understates assets Overstates retained earnings

IV. Accrual of liabilities Overstates profit Overstates liabilities Overstates retained earnings

a. IV

b. I and III

c. II

d. II and III