ACC670 Week 3 Discussion (dq1+dq2) Latest November 2018

ACC670 Advanced Financial Statement Analysis

Week 3 Discussion

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DQ1 How do managers and creditors use financial reports? Which ratios would each group rely on more and provide relevant information.

DQ2 A company changes its inventory method from FIFO to LIFO during a time of rising prices. Discuss the effect of this change on the next period. In what situation would management benefit from going from FIFO to LIFO? Discuss some of the pros and cons of changing inventory valuation methods? Support your answer with examples.


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