Question

following is an example of an accounting policy
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Answer 1

Answer:

Accounting policies can be used to legally manipulate earnings. For example, companies are allowed to value inventory using the average cost, first in first out (FIFO), or last in first out (LIFO) methods of accounting.

Answer 2

Answer:

Example of an Accounting Policy

Accounting policies can be used to legally manipulate earnings. For example, companies are allowed to value inventory using the average cost, first in first out , or last in first out methods of accounting.

Explanation:

Account policies for depreciation would be the nature of expenses that should or should not capitalize, the depreciation rate, and the process of disposal assets. Another simple example of accounting policy is inventories. Those policies will include what method the company uses to measure its inventories.

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