What are some of the areas in which different methods can affect the reporting of financial results

Task: 1. Management has latitude under GAAP in selecting accounting methods. What are some of the areas in which different methods can affect the reporting of financial results? Accounting methods can vary from based on what a company prefers. Some prefer to use LIFO or FIFO. Others may use weighted averages in their calculations 2. What are some of the potential warning signs that you see in the Form 10K financial statements for the company that you selected for the Company Analysis Project? 3. Why is it important for an analyst to review the “Auditor’s Opinion” in a company’s financial statements? What does the Auditor’s Opinion in the Form 10K report for the company that you selected for the Company Analysis Project reveal to shareholders and analysts? Should the Auditor’s Opinion contain more or less information? 4. Why is it important for an analyst to carefully examine the non-recurring transactions including write-downs, accounting changes, and extraordinary items? What write-downs, accounting changes, and extraordinary items are revealed in the Form 10K report for the company that you selected for the Company Analysis Project? 5. Most Important Things Learned – What are the most important things you learned from the study of this week’s readings, discussions, and assignments?