Shown below are a number of events. For each of these, state the impact on the financial
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Shown below are a number of events. For each of these, state the impact on the financial statement element or ratio in each of the column headings. Explain the impact using the words Increase, Decrease, or No Effect.
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Event Change from average cost to FIFO when inventory costs are rising Record the effect of inventory theft Write down inventory to its net realizable value Change from average cost to FIFO when inventory costs are falling Cost of Goods Sold Gross Retained Current Profit Inventory Earnings Ratio
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Related Book For
Financial Accounting Tools For Business Decision Making
ISBN: 9781119594574
8th Canadian Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine, Christopher D. Burnley
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