ACC205 week 3 DQ

Week 3 DQ 1
.The controller of Sagehen Enterprises believes
that the company should switch from the LIFO method to the FIFO method.
The controller’s bonus is based on the next income. It is the
controller’s belief that the switch in inventory methods would increase the
net income of the company. What are the differences between the LIFO and
FIFO methods? Week
3 DQ 2
A variety of
depreciation methods are used to allocate the cost of an asset to all of the
accounting periods benefited by the use of the asset. Your client has
just purchased a piece of equipment for $100,000. Explain the
concept of depreciation. Which of the following depreciation methods
would you recommend: straight-line depreciation, double declining balance
method, or an alternative method?