Which of the Following Are Changes in Accounting Principle

question 72

Multiple Choice

Which of the following are changes in accounting principle?
I. A change from LIFO to FIFO.
II. A change in estimated salvage value of depreciable asset.
III. A change from an accelerated depreciation method to straight line depreciation.
IV. Recording depreciation for the first time on machinery purchased five years ago.

• A) I, II, III and IV
• B) I, II and III
• C) I, III and IV
• D) I and III

---

Definitions:

Atkinson-Shiffrin Model

A theory of human memory that proposes memory is processed through three systems: sensory memory, short-term memory, and long-term memory.

Memory

The mental capacity to store, retain, and recall information and experiences from the past.

Working Memory System

A mental system that has a restricted ability and is in charge of briefly maintaining information ready for processing.

Short-Term Memory

The aptitude for storing a minimal amount of details in a directly accessible and active mode for a limited time span.