Question

Which of the following are changes in accounting principles?

I. a change from FIFO to average cost.
II. using a different method of depreciation for new plant assets.
III. a change from completed-contracts to percentage-of-completion.
IV. a change from LIFO to FIFO for inventory valuation.

Answer 1

options I, II and IV are the changes in accounting principle

Step-by-step explanation:

Following are the changes in the accounting principles

-a change from FIFO to average cost.

- a change from completed-contracts to percentage-of-completion.

-a change from LIFO to FIFO for inventory valuation.

whereas, using a different method of depreciation for new plant assets was implemented earlier only.

So, options I, II and IV are the changes in accounting principle