- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 15. Integration of Financial Statement Analysis Techniques
- Subject 1. A Financial Statement Analysis Framework
CFA Practice Question
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.
Correct Answer: A
The choice between debt and equity is not an accounting choice, it's a financing choice. Thus, it is least likely to cause difficulty in comparing the financial results of different firms.
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