I’m trying to study for my Accounting course and I need some help to understand this question.
The Week 4 Forum consists of two separate questions. You will answer one of the two questions. The chosen question needs to be answered with an initial post of at least 250 words .
Pick only one question:
(1st question) Describe a classified income statement. Be sure to address the classified income statement’s four sections and the important financial relationships found within the statement.
(2nd question) The United States has a capitalistic economy. What is capitalism? Explain how the different inventory valuation methods affect a company’s financial statements. Can the inventory valuation method chosen affect a company’s ability to compete in a capitalistic economy? Please explain.
Instructions: Your initial response should have extensive words (at least 250 words). Please use reference in APA format.
This week we will explore Chapter(s) 7 and 8 of the textbook. Chapter 7 introduces inventories and the classified income statement. It further compares service and merchandising companies. Chapter 8 discusses methods of measurement for inventories and how the cost of goods sold and net income are affected by the different methods.