What acounting principle would changing every year violate

Assignment Help Accounting Basics
Reference no: EM131783435

Question - During 2012, Crop-Paper-Scissors, a craft store, changed to the LIFO method of accounting for inventory. Suppose that during 2013 they switch back to the FIFO method and the following year switch back to LIFO again.

Requirements:

1. What would you think of a company's ethics if it changed accounting methods every year?

2. What acounting principle would changing every year violate?

3. Who can be harmed when a company changes its accounting methods too often? How?

Reference no: EM131783435

Questions Cloud

What is sondra gift tax liability : In 2010, Sondra makes taxable gifts aggregating $300,000. Her only other taxable gifts amount to $200,000, What is Sondra's 2010 gift tax liability
Discuss the journal entry to record the bond redemption : Prepare the journal entry to record the bond redemption. For a compound transaction, if an amount box does not require an entry
Maturity on a? comparable-risk bond : The annual coupon interest rate is 11 percent and the? market's required yield to maturity on a? comparable-risk bond is 15 percent.
What is the essential elements of great powerpoint type : What is the essential elements of a great PowerPoint type of presentation for a business meeting?
What acounting principle would changing every year violate : During 2012, Crop-Paper-Scissors, a craft store, changed to LIFO method of accounting for inventory. What acounting principle would changing every year violate
Maturity on a? comparable-risk bond : The annual coupon interest rate is 9 percent and the? market's required yield to maturity on a? comparable-risk bond is 13 percent.
Determine the stiffness against the force f for the frame : Determine the stiffness against the force F for the frame of Figure, which is pinned at the top and bottom.
Calculate the issuance price for each bond : Suppose that a company issues the following bonds at different times. Interest on the bonds is paid annually
Denying that unemployment is growing : The Prime Minister, denying that unemployment is growing, claims that: "We've created more jobs". How would you respond to this point?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd