Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 4 - Income Statement and Related Information - Review and Practice - Questions - Page 179: 4


Some situations where comparison of different accounting methods may be problematic may include: 1. Last In First Out (LIFO) vs. First In First Out (FIFO) inventory methods. 2. Varying depreciation methods. 3. Varying accounting affiliated with long-term projects.

Work Step by Step

Different accounting methods use different assumptions and follow different accounting principles; for companies using different accounting methods, comparing data may be erroneous.
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