A partner from a major accounting firm made the following comment when asked about the accounting methods
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After reading such a comment, one might conclude that managers who wish to raise capital by borrowing from banks or issuing equity or debt securities should choose the FIFO cost flow assumption instead of LIFO. Yet, others have written that they are “puzzled” about why thousands of U.S. companies use FIFO instead of LIFO.
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Discuss the above comments.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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