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Transaction for change in Depreciation Method
If a company change its depreciation method from Straight line method to another method than what will be the impact for the difference?
prashant
- Sep 11th, 2012
It should be adjusted in only that assests account by charging extra dep. or charging less dep........
steadyshot23
- Mar 18th, 2010
No Journal entry is needed. You just use the method that you changed to.
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Declining Inventory Prices
When inventory prices are declining the, FIFO method will generally yield a gross profit that is:A Less than the LIFO methodB Equal to the average cost methodC The same as that from any other costing methodD Higher than the LIFO method.
steadyshot23
- Mar 18th, 2010
Gross Profit is always higher for FIFO than LIFO. Cost of Goods sold is going to be always higher for LIFO and lower for FIFO. LIFO tends to go for more of a tax break approach. Comp...
niki_1079
- Jan 1st, 2010
It would be less then Lifo Method Definitely, as inventory prices are declining. if inventory prices are increasing then it would be higher then LIFO method.
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