Approaches/
What are the three approaches for accounting changes?
Retrospective, Modified Retrospective, and Prospective
If I sold primarily dirt and gravel (landscaping) what kind of inventory cost would I use?
Lifo
What are the four types of depreciation
straight line, double declining, sum of the years digits, and units of production
Financial statements do not need to be restated if the approach is
Prospective
Typically produces lower Cost of Goods Sold and higher Inventory
Fifo
The value is $500,000 with a useful life of 20 years and no salvage value. What is the depreciation using straight line.
$25,000
Mandates changes in accounting principles.
FASB
Typically has a lower net income and retained earnings because of higher cost of goods sold.
Lifo
If using sum of the years digits what is the denominator if the useful life is 10 years.
55