Explain how the choice of one of the following accounting methods over the other raises or lowers

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Explain how the choice of one of the following accounting methods over the other raises or lowers a company’s net income during a period of continuing inflation.
(a) Use of FIFO instead of LIFO for inventory costing.
(b) Use of a 6-year life for machinery instead of a 9-year life.
(c) Use of straight-line depreciation instead of declining-balance depreciation.

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Financial Accounting Tools for business decision making

ISBN: 978-0470534779

6th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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