How does the inventory accounting choice (LIFO/FIFO) impact a firm's valuation? a)Deferring tax payments via LIFO accounting, decreases the the firm's value b)All of the above c)The timing of cash flows are the same under both LIFO and FIFO d)Has no impact on NOPAT e)By changing the timing of cash flows, the firm's valuation is impacted
How does the inventory accounting choice (LIFO/FIFO) impact a firm's valuation? a)Deferring tax payments via LIFO accounting, decreases the the firm's value b)All of the above c)The timing of cash flows are the same under both LIFO and FIFO d)Has no impact on NOPAT e)By changing the timing of cash flows, the firm's valuation is impacted
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter9: Working Capital
Section: Chapter Questions
Problem 12Q
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How does the inventory accounting choice (LIFO/FIFO) impact a firm's valuation?
a)Deferring tax payments via LIFO accounting, decreases the the firm's value
b)All of the above
c)The timing of cash flows are the same under both LIFO and FIFO
d)Has no impact on NOPAT
e)By changing the timing of cash flows, the firm's valuation is impacted
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