Answered: The use of alternative accounting…

Business

Accounting

The use of alternative accounting methods:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The use of alternative accounting methods:

A. is not a problem in ratio analysis because the footnotes disclose the method used.

B. may be a problem in ratio analysis even if disclosed.

C. is not a problem in ratio analysis since eventually all methods will lead to the same end.

D. is only a problem in ratio analysis with respect to inventory.

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