Explain the difference between an error correction and a change in accounting principles and how each is accounted for. Scenario: Ray Solutions decided to make the following changes in its accounting

Explain the difference between an error correction and a change in accounting principles and how each is accounted for.

Scenario:

Ray Solutions decided to make the following changes in its accounting policies on January 1, 2016:

• Changed from the cash to the accrual basis of accounting for recognizing revenue on its service contracts
• Adopted straight-line depreciation for all future equipment purchases, but continued to use accelerated depreciation for all equipment acquired before 2016.
• Changed from the LIFO inventory method to the FIFO inventory method.

Submission Guidelines:

Please turn in a paper 500-700 words in length following APA formatting. 

• 3–5-pages.
• Your paper must be in Word format .
• Must include a title page, abstract, and references. These are not counted in the page count.