Term
| In a perpetual inventory system, if merchandise is returned to the supplier, what is the credit account |
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Definition
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Term
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Definition
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Term
| By the Gross Method of accounting for purchase discounts, a discount not taken is recorded as: |
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Definition
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Term
| By the Net Method of accounting for purchase discounts, a discount not taken is recorded as: |
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Definition
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Term
| In a period of declining cost, the use of which inventory cost method would result in the highest ending inventory? |
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Definition
LIFO
Cheapest inventory is being sold first, older inventory at higher cost is left in inventory.
LIFO = Lower COGS; Higher EI |
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Term
| IFRS does not allow which method of inventory valuation? |
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Definition
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Term
| LIFO liquidation profits occur when: |
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Definition
| Costs are rising and inventory quantity declines |
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Term
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Definition
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Term
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Definition
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Term
| GAAP defines market value for LCM purposes as: |
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Definition
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Term
| Net Realizable Value (NRV) = |
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Definition
| Selling Price - Disposal Cost |
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Term
| NRV Represents the ________ limit |
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Definition
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Term
| (NRV - NP) represents the ________ limit |
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Definition
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Term
| In "NRV-NP" the NP represents what? |
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Definition
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Term
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Definition
Perpetual:
DR. Inventory
CR. A/P
Periodic:
DR. Purchase
CR. A/P |
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Term
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Definition
Perpetual:
DR. Inventory
Cr. Cash
Periodic
DR. Freight In
Cr. Cash |
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Term
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Definition
Perpetual:
Dr. A/P
Cr. Inventory
Periodic:
Dr. A/P
Cr. Purchase Returns |
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Term
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Definition
Perpetual Gross Method:
Dr. AP
Cr. Inventory
Periodic Gross Method:
Dr. AP
Cr. Purchase Discounts |
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Term
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Definition
Perpetual
Dr. AR
Cr. Sales Revenue
Dr. COGS
Cr. Inventory
Periodic
Dr. AR
Cr. Sales Revenue |
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Term
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Definition
Perpetual:
No Entry
Periodic
Dr. Inventory (Ending)
Dr. COGS
Cr. Inventory (Beginning)
Cr. Purchase Return
Cr. Purchases |
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Term
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Definition
Dr. Depreciation
Cr. Acc. Depr |
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Term
| Natural Resource Depreciation JE |
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Definition
Dr. Depletion
Cr. Natural Resource Asset |
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Term
| Intangible Depreciation JE |
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Definition
Dr. Amortization
Cr. Intangible Asset |
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Term
| Straight Line Depreciation Formula |
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Definition
| (Acquisition Cost - Residual Value) / Useful Life |
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Term
| The cost of equipment includes: |
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Definition
Net Purchase Price
Sales Tax
Transportation Cost (Paid by buyer)
Installation Cost
Modification cost
Testing and Trial runs |
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Term
| Research & Development Cost are considered |
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Definition
Expenses
Dr. RD Exp
Cr. Cash |
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