During 2016, Coalmont, Inc., changed to the LIFO method. Suppose that during 2017, Coalmont changed back to

Question:

During 2016, Coalmont, Inc., changed to the LIFO method. Suppose that during 2017, Coalmont changed back to the FIFO method. In 2018, the company switched back to LIFO again.

Requirements

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 and how when a company changes its accounting methods too often?

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Related Book For answer-question

Financial Accounting

ISBN: 978-0134725987

12th edition

Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

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Question Posted: Jun 15, 2019 08:15 AM

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During 2016, Coalmont, Inc., changed to the LIFO method. Suppose that during 2017, Coalmont changed back to

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Req 1 Changing accounting methods year after year hurts a companys credibility which ...View the full answer

Financial Accounting

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