Without knowledge of the accounting method a company uses to value its inventory, a banker could make an unwise lending decision.

Question

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The method used to value inventory can impact a company's financial statements, including its balance sheet, income statement, and cash flow statement. This information is important for a banker to consider when making lending decisions as it can impact the company's ability to repay the loan. Therefore, without knowledge of the accounting method used to value inventory, a banker could make an unwise lending decision.

Without Knowledge of the Accounting Method a Company Uses to Value