Which of the following would NOT be accounted for as a change in accounting principle?
A) Change from the first-in,first-out method to the last-in,first-out method of inventory pricing
B) Change from the last-in,first-out method to the first-in,first-out method of inventory pricing
C) Change from completed-contract accounting to percentage-of-completion
D) Change from straight-line method to accelerated method of depreciation

Question

Quizplus · Accepted Answer

A change in accounting principle refers to a change in the method or techniques used to prepare financial statements, while a change in depreciation method is a change in an estimate used in generating financial statements. Therefore, the change from straight-line to accelerated method of depreciation is not accounted for as a change in accounting principle.

Which of the Following Would NOT Be Accounted for as a Change