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Generally Accepted Accounting Principles (GAAP) allow companies to choose any inventory costing method, although the consistency principle requires that they not switch between methods on a regular basis. However, many companies still change methods from one year to the next. Perform research on this topic in order to address the below questions. Citing sources:
Problem 1: Why is consistency important in the first place?
Problem 2: What are some valid reasons companies may decide to switch methods?
Problem 3: How does the company's choice of financial accounting inventory method impact their tax reporting?
Problem 4: What financial statements does the inventory choice impact and how may a change impact those statements?
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: - Explain the goals and uses of special journals.
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