Discuss the effect of fifo and lifo methods

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Question 1: The book value of a company's assets usually does not equal the market value of those assets. What are some reasons for this difference?

Question 2: Discuss the effect of FIFO and LIFO methods on the balance sheet and income statement during periods of inflation.

Question 3: What are the main financial statements that all public companies must produce. What kind of information can we get from each one?

Question 4: Explain why the expected return of a corporate bond is not equal to its yield to maturity.

Question 5: Critics of rating agencies argue that because the firm pays agencies to rate the firm's debt, the rating agencies may have incentives to give biased ratings. How could you test if this statement is true?

Reference no: EM132423106

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