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primary basis for deciding which method to use is based on the end-user of the financial statement, accounting homework help
Please confirm for me that you are suggesting the primary basis for deciding which method to use is based on the end-user of the financial statement? Why would a company chose to create a financial statement which makes the net income look better if it does not accurately reflect the useful life of the asset? For example, if a company purchased a truck to make deliveries, and they were going to share their financial statements with investors, would you opt to use a straight line approach simply to make the financial statements look better as an example, even if it does not closely reflect the true allocation of cost?
Secondly, could a company have two sets of “books” one for external and one for internal? Why or why not?
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