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The excess of an inventory's value stated on a FIFO basis over its value stated on a
LIFO basis is called a(n) ____________________.
Many companies assist the users of the financial statements by providing information
about the company's accounting policy choices in the first note to the financial
statements.
"You Decide" Essay
You are the Chief Financial Officer of Laser Craft Technology. Your company needs to
raise capital to pursue an expansion project, but the company does not want to sell
additional common stock. What factors should you consider in deciding whether to
issue debt or preferred stock?
One reason management may choose the straight-line method of depreciation is because
it is easy to compute.
An increase in a company's revenue and expense accounts will always cause an increase
in net income for the period.
The three main business activities are financing, operating, and investing.
