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Starfish Company follows GAAP and uses the LIFO inventory method. The company is considering changing...

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Accounting

image Starfish Company follows GAAP and uses the LIFO inventory method. The company is considering changing to IFRS and the FIFO inventory method. How would a comparison of these methods affect Starfish's financials? During a period of inflation, working capital would decrease when IFRS and the FIFO inventory method are used as compared to GAAP and LIFO. During a period of inflation, the taxes will decrease when IFRS and the FIFO inventory method are used as compared to GAAP and LIFO. During a period of inflation, net income would be greater if IFRS and the FIFO inventory method are used as compared to GAAP and LIFO. During a period of inflation, the current ratio would decrease when IFRS and the FIFO inventory method are used as compared to GAAP and LIFO

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