Question 1: If management reports truthfully, what economic events are likely to prompt the following accounting changes?
1. Increase in the estimated life of depreciable assets
2. Decrease in the uncollectibles allowance as a percentage of gross receivables
3. Recognition of revenues at the point of delivery, rather than at the point cash is received
4. Capitalization of a higher proportion of software R&D costs
Question 2: What features of accounting, if any, would make it costly for dishonest managers to make the same changes without any corresponding economic changes?