Company A uses the weightedaveragecost inventory method and discloses this in notes to the financial statements Company B uses the FIFO method to account for its inventory but does not disclose which inventory method it uses Company B reports a higher net income than Company A In which company would you prefer to invest Give your reason Assume rising inventory costs

Answer rating: 100% (QA)

Solution In the given case Company A uses LIFO inventory meth... View the full answer