Which of the following statements is correct with respect to positive accounting theory?
A) Managers of firms with bonus based contracts prefer LIFO method of valuation basis, if permitted.
B) Managers of firms with bonus based contracts prefer FIFO method of valuation basis.
C) Managers prefer the FIFO method of valuation basis.
D) Managers with debt covenants prefer LIFO method, if permitted.
E) E: None of the given answers.

Question

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The Answer of Which of the following statements is correct with respect to positive accounting theory?
A) Managers of firms with bonus based contracts prefer LIFO method of valuation basis, if permitted.
B) Managers of firms with bonus based contracts prefer FIFO method of valuation basis.
C) Managers prefer the FIFO method of valuation basis.
D) Managers with debt covenants prefer LIFO method, if permitted.
E) E: None of the given answers.

Which of the Following Statements Is Correct with Respect to Positive