FIFO involves lower cost of goods sold and higher inventory balances. Taxes are higher under FIFO and cash flows are lower (due to higher taxes paid ). Companies are able to manipulate profits under LIFO if they drop inventory below normal levels and dip into "cheap", older inventory. This...
AMT inventory adjustments on change from LIFO to FIFO. (alternative minimum tax)Burlas, David MJosephs, Stuart R
Which of the following is a change in accounting principle? I. A change from LIFO to FIFO II. A change in estimated salvage value of depreciable asset III. A change from an accelerated depreciation method to straight-line depreciation IV. Recording depreciation for the first time ...
The best example of a change in accounting policy is the inventory valuation. The company is using First in, First Out (FIFO) inventory method as the valuation of the stock. Due to the law's requirement, now the company has to use the Last In, First Out (LIFO) method as the stock v...
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Which of the following is (are) a change(s) in accounting principle? I. a change from LIFO to FIFO. II. a change in estimated salvage value of a depreciable asset. III. a change from a straight line to sum-of-the-years ...