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?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting

ISBN: 978-0134725987

12th edition

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

See More Books

Question Posted: Jun 15, 2019 08:15 AM

See More Questions

During 2012, Crop-Paper-Scissors, a craft store, changed to the LIFO method of accounting for inventory. Suppose that during 2013, Crop-Paper-Scissors switches back to the FIFO method and the...
The Greenriver Manufacturing Company manufactures two products: Raft and Float. At December 31, 2010, Greenriver used the FIFO inventory method. Effective January 1, 2011, Greenriver changed to the...
The Kraft Manufacturing Company manufactures two products: Mult and Tran. At December 31, 2007 Kraft used the FIFO inventory method. Effective January 1, 2008, Kraft changed to the LIFO inventory...
Explain why each of the following statements about profit-maximizing competitive firms is incorrect. Restate each one correctly. a. A competitive firm will produce output up to the point where price...
Write out the formula for the general real solution to the system in Example 9.16 and verify its stability.
Shows the graph of a function over a closed interval D. At what domain points does the function appear to be a. Differentiable? b. Continuous but not differentiable? c. Neither continuous nor...
Create a Windows Forms application. Use the following names for the project and solution, respectively: Bindy Project and Bindy Solution. Save the application in the VB2017\Chap08 folder. Bindy...
The following transactions occurred during March 2013 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. [These are the same transactions analyzed in Exercise 21,...
prepare an income statement for january
Each month the US Department of Agriculture produces the Retail Milk Prices Report. The report lists the retail prices of milk for selected cities. The December 2019 prices (dollars per gallon) for...
Jasper Corporation is nearing the end of its first year of operations. Jasper made inventory purchases of $745,000 during the year, as follows: Sales for the year are 5,000 units for $1,200,000 of...
This case will help you learn to use a companys inventory notes. The notes are part of the financial statements. They give details that would clutter the financial statements themselves. Refer to...
(a) Name three factors that influence the degree to which vitrification occurs in clay-based ceramic wares. (b) Explain how density, firing distortion, strength, corrosion resistance, and thermal...
The following information is available for Spring Inc. and Winter Inc. at December 31, 2011: Required a. What is the accounts receivable turnover for each of the companies for 2011? b. What is the...
Margin of error = 0.5 g, standard deviation = 8.7 g
A certain random process $U(t)$ takes on equally probable values +1 or 0 with changes occurring randomly in time. The probability that $n$ changes occur in time $\tau$ is known to be \[...
The focal points of the two converging lenses shown in Figure P33.121 are denoted by solid dots for the left lens and open dots for the right lens. Draw a simplified ray diagram to locate the final...
Suppose that country A has 9,000 worker hours available for production and that it initially has the technology given by case 3 of Exercise 1. Derive its PPF and determine its exact dimensions. data...
For the following exercises, solve the equations below and express the answer using set notation. -X 3 5 = 14
In a paragraph of approximately 150-200 words, analyze a film or TV/Streaming Show poster of your choosing by focusing on the ways in which representations in the poster are gendered. Include an...
Hennes Corporation was organized on January 1, 2012. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $2...
The stockholders equity accounts of Nardin Corporation on January 1, 2012, were as follows. Preferred Stock (9%, $50 par cumulative, 10,000 shares authorized) ....$ 200,000 Common Stock ($1 stated...
On December 31, 2011, Bryant Company had 600,000 shares of $1 par common stock issued and outstanding. The stockholders equity accounts at December 31, 2011, had the balances listed here. Common...
Duncan Inc. issued 500, $1,200, 8%, 25 year bonds on January 1, 2020, at 102. Interest is payable on January 1. Duncan uses straight-line amortization for bond discounts or premiums. INSTRUCTIONS:...
WISE-HOLLAND CORPORATION On June 15, 2013, Marianne Wise and Dory Holland came to your office for an initial meeting. The primary purpose of the meeting was to discuss Wise-Holland Corporation's tax...
Stock in ABC has a beta of 0.9. The market risk premium is 8%, and T-bills are currently yielding 5%. The company's most recent dividend is $1.60 per share, and dividends are expected to grow at a 6%...

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

Question:

Step by Step Answer:

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

Financial Accounting

Students also viewed these Business questions