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According to GAAP Codification section 250

According to GAAP Codification section 250 - 1 Emir Pasovic...

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1 Emir Pasovic ACC 5100 Weimer 9/20/10 Research Case 1 1. According to GAAP Codification section 250-10-45-1, strict regulations exist in changing inventory regulation methods, and thus a company will have difficulties changing its inventory valuation method every period as it pleases. Using a specific accounting principle consistently enhances the utility of financial statements for users by facilitating analysis and understanding of comparative accounting data. According to GAAP Codification 250-10-45-2, in order to change its inventory regulation method, a company must either be forced to change it due to a newly issued Codification update, or the company must justify using a different method on the basis that it is preferable. 2. According to GAAP Codification section 210-10-45-2, prepaid expenses are presented with current assets in the balance sheet since they are thought of in the sense that, if not paid in advance, they would require the use of current assets during the operating cycle.
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