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Basic Question 2 of 2
Which of the following choices would not likely be a cause for difficulty in comparing the financial results of different firms?
B. Choosing between the various depreciation methods.
C. Choosing between the LIFO and FIFO methods of accounting for inventory.
D. Choosing between the treatment of leases as operating or capital.
A. Choosing between the issuance of more debt or equity.
B. Choosing between the various depreciation methods.
C. Choosing between the LIFO and FIFO methods of accounting for inventory.
D. Choosing between the treatment of leases as operating or capital.
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Learning Outcome Statements
demonstrate the use of a framework for the analysis of financial statements, given a particular problem, question, or purpose (e.g., valuing equity based on comparables, critiquing a credit rating, obtaining a comprehensive picture of financial leverage, evaluating the perspectives given in management's discussion of financial results);
CFA® 2025 Level II Curriculum, Volume 2, Module 15.