Current GAAP Defines Three Types of Changes

question 53

Essay

Current GAAP defines three types of changes:
a. Changes in accounting principle
b. Changesin accounting estimate
c. Changes in reporting entity
Define each item, give an example, and describe how it should be accounted for.

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Definitions:

Di-sec-Butyl Ether

An organic compound formed by the dehydration reaction between two sec-butyl alcohol molecules, resulting in an ether with a dialkyl structure.

Sec-Butanol

A secondary alcohol with the chemical formula C4H10O, where the hydroxyl group is connected to the second carbon in a butane chain.

Sulfuric Acid

A highly corrosive strong mineral acid with the molecular formula H2SO4, widely used in industry for processes including fertilizer manufacturing, oil refining, and wastewater processing.

Major Organic Product

The main product formed in the highest yield in an organic chemical reaction, as opposed to minor products that are formed in smaller amounts.