During 2013, Bryant Electronics changed to the weighted-average-cost method of accounting for inventory. Suppose that during 2014,

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During 2013, Bryant Electronics changed to the weighted-average-cost method of accounting for inventory. Suppose that during 2014, 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  book-img-for-question

Accounting Volume 1

ISBN: 978-0132690096

9th Canadian edition

Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood

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