"FIFO, Average, IFRS, periodic, perpetual, I don't care which one you use! Just pick the one that allows me to keep the bank happy by providing good stable cash flow and gives me something I can show them for collateral against my loan," exclaimed your exasperated client.He operates a small manufacturing business, and you are helping him select accounting policies after his first year in operation.
Required:
Address you client's concerns, and recommend accounting policies for inventory that will help him meet his objectives.It is not necessary to define the terms he used.

Question

Quizplus · Accepted Answer

The Answer of "FIFO, Average, IFRS, periodic, perpetual, I don't care which one you use! Just pick the one that allows me to keep the bank happy by providing good stable cash flow and gives me something I can show them for collateral against my loan," exclaimed your exasperated client.He operates a small manufacturing business, and you are helping him select accounting policies after his first year in operation.
Required:
Address you client's concerns, and recommend accounting policies for inventory that will help him meet his objectives.It is not necessary to define the terms he used.

"FIFO, Average, IFRS, Periodic, Perpetual, I Don't Care Which One