During 2022, Bryant Electronics changed to the weighted-average-cost method of accounting for inventory. Suppose that during 2023
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During 2022, Bryant Electronics changed to the weighted-average-cost method of accounting for inventory. Suppose that during 2023 Bryant Electronics changes back to the FIFO method and in the following year switches back to the weighted-average-cost method again.
Required
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?
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Related Book For
Horngrens Accounting Volume 1
ISBN: 9780136889373
12th Canadian Edition
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura
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