Question: During 2015 Crop Paper Scissors a craft store changed to

During 2015, Crop- Paper- Scissors, a craft store, changed to the LIFO inventory costing method of accounting for inventory. Suppose that during 2016, Crop-Paper-Scissors switches back to the FIFO inventory costing method and the following year switches back to LIFO again.

1. What would you think of a company’s ethics if it changed accounting methods every year?
2. What accounting principle would changing methods every year violate?
3. Who can be harmed when a company changes its accounting methods too ­often? How?

Sale on SolutionInn
  • CreatedJanuary 16, 2015
  • Files Included
Post your question