Which of the following would make the current ratio less comparable across two companies that...
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Accounting
Which of the following would make the current ratio less comparable across two companies that operate in the same industry?
- Mark any and all that apply.
Select one or more:
Differences in assumed salvage values for PP&E
Different inventory cost flow assumptions (e.g., LIFO vs. FIFO)
One firm holds more cash than the other
One firm uses more short-term debt than the other
One firm recognizes revenue from old gift cards more aggressively than the other
Different revenue recognition policies
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