Sing Songs Ltd.started operations on January 1,2016.During its first year of operations,the company had a choice of accounting policies:

Using the following information about activities for 2016-2018,derive the 2016 net income (only)under both accounting options and explain why the net income under the two methods is not the same.

Question

Sing Songs Ltd.started operations on January 1,2016.During its first year of operations,the company had a choice of accounting policies:
  
Using the following information about activities for 2016-2018,derive the 2016 net income (only)under both accounting options and explain why the net income under the two methods is not the same.

Quizplus · Accepted Answer

The Answer of Sing Songs Ltd.started operations on January 1,2016.During its first year of operations,the company had a choice of accounting policies:
  
Using the following information about activities for 2016-2018,derive the 2016 net income (only)under both accounting options and explain why the net income under the two methods is not the same.