Answered: The use of alternative accounting…

Business

Accounting

The use of alternative accounting methods:

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter7: Professional Issues

Section7.1: Ligand Pharmaceuticals

Problem 3Q

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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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Similar questions

Which accounting rule serves as the primary basis for the lower-of-cost-or-market methodology for inventory valuation? A. conservatism B. consistency C. optimism D. pessimism
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