Format of multiple step income statement ? How to calculate Cost of Goods Sold and Ending Inventory
Format of multiple step income statement
How to calculate Cost of Goods Sold and Ending Inventory under all methods (FIFO, LIFO, Weighted
Average, and Specific Identification)
How the choice of inventory cost flow method affects the relative balances in Ending Inventory and
Cost of Goods Sold; which method is considered “balance-sheet focused” and which is “income-
statement” focused
Gross Profit calculation and income statement presentation
What is the Lower of Cost or Net Realizable Value and how is it calculated
How to calculate Return on Assets
How to calculate book value
How to calculate depreciable value (AKA depreciable “cost”)
How to calculate and record depreciation expense under Straight line, declining balance, and activity-
based methods
How to record asset acquisitions and dispositions, including
o
How to determine the cost of the asset
o
Basket purchase
o
Gain or loss on sale
o
Which types of expenditures subsequent to initial purchase are expensed and which may be
capitalized
How to calculate and record bad debt expense and the allowance for bad debts
How to record a write off
How to record a payment on an account previously written off
How to calculate, record, and present in the Income Statement:
o
Trade discounts
o
Sales discounts
o
Sales returns
o
Sales Allowances
Notes receivable
o
How different from Accounts Receivable
o
How to record
Issuance
Accrued interest
Payment
FOB Shipping Point vs FOB Destination
Intangible Assets
o
Definitions
o
Types
o
Lives / Amortization
