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The choice among accounting principles often results in a trade-off between favoring valuations on the balance sheet over the income statement. For example, FIFO favors
The choice among accounting principles often results in a trade-off between favoring valuations on the balance sheet over the income statement. For example, FIFO favors the balance sheet and LIFO favors the income statement. Some accountants argue that the inventory method used is irrelevant for financial reporting purposes so long as the user understands the impact of the choice of an inventory method. Is this true? Explain.
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