Intermediate Accounting I Study Sheet
Blacksmith G
StudySheetfor891011Exam.rtf- PERIODIC INVENTORY SYSTEM VS PERPETUAL INVENTORY SYSTEM
WHAT IS COST OF GOODS SOLD...WHAT FINANCIAL STATEMENT DOES IT GO ON....HOW DOES ANYTHING GET INTO THIS ACCOUNT....COMPUTE CGS IF YOU USED A PERIODIC INVENTORY SYSTEM....
WHAT DO YOU INCLUDE IN THE COST OF INVENTORY?
FOB POINTS
WHAT ARE PURCHASE DISCOUNTS....WHEN DO YOU RECORD THEM...WHAT HAPPENS TO THIS ACCOUNT AT THE END OF THE PERIOD... What inventory system is this account used with?
WHAT ARE PURCHASE RETURNS...SAME QUESTIONS AS ABOVE
DIFFERENT COST FLOW ASSUMPTIONS....HOW DO YOU COMPUTE ENDING INVENTORY AND CGS UNDER EACH....WHAT INDUSTRIES USE SOME OF THEM....HOW DOES A COMPANY CHOOSE A CERTAIN METHOD.....does the cost flow method you use have to match the actual physical flow of your goods
LIFO CONFORMITY RULE....what is this???
COST INDEX for the base year....how is a cost index computed
DOLLAR VALUE LIFO COMPUTATION...HOW IS INVENTORY VIEWED WHEN YOU USE THIS METHOD....quantity or dollar value
HOW SHOULD INVENTORY BE VALUED ON YOUR BOOKS.....LCNRV or LCM
NET REALIZABLE VALUE....WHAT IS IT AND HOW IS IT COMPUTED
HOW DO YOU RECORD AN INVENTORY WRITE DOWN....one that is common place and one that is unusual
INVENTORY ESTIMATION TECHNIQUES -- 2 OF THEM AND COMPUTE THE ESTIMATED INVENTORY UNDER BOTH METHODS
CHANGE FROM ONE INVENTORY METHOD TO ANOTHER....WHAT MUST A COMPANY DO TO SUPPORT THIS CHANGE.....is the change accounted for retrospectively or prospectively
HOW DO YOU HANDLE A MATERIAL INVENTORY ERROR THAT OCCURRED IN A PRIOR PERIOD....
COMPUTE THE COST OF ACQUISITION FOR ALL PPE, Natural Resources AND Intangible Assets
WHAT IS GOODWILL AND HOW IS IT COMPUTED....what is the formula
ASSET RETIREMENT OBLIGATION---WHEN DO YOU RECOGNIZE AND HOW DO YOU COMPUTE IT AND IT BECOMES PART OF THE INITIAL COST OF WHAT
WHAT INTANGIBLE ASSETS DO YOU NOT AMORTIZE
HOW TO YOU ALLOCATE THE PRICE OF A LUMP SUM PURCHASE AMONG THE SEPARATE ITEMS...COMPUTE
HOW DO YOU RECORD ASSETS ACQUIRED IN NONCASH TRANSACTIONS ....what is the rule
HOW DO YOU RECORD DONATED ASSETS ACQUIRED BY A COMPANY....what is the JE
HOW DO YOU COMPUTE A GAIN OR LOSS WHEN SELLING PPE
WHAT IS COMMERCIAL SUBSTANCE AND HOW DOES IT EFFECT THE RECORDING OF AN EXCHANGE OF PLANT ASSETS
WHAT IS THE EXCEPTION REGARDING THE CAPITALIZATION OF R&D IN REGARDS TO SOFTWARE DEVELOPMENT....or when do you capitalize costs in regards to software development
JOURNAL ENTRIES FOR PURCHASES OF INVENTORY UNDER PERIODIC AND PERPETUAL USING THE NET AND GROSS METHODS
COMPUTE THE COST OF GOODS SOLD AND THE ENDING INVENTORY AMOUNTS FOR ALL OF THE COST FLOW ASSUMPTIONS - FIFO LIFO AVERAGE SPECIFIC IDENTIFICAITON
COMPUTE ENDING INVENTORY USING DOLLAR VALUE LIFO
COST INDEX....WHAT IS IT....WHAT IS IT FOR BASE YEAR....
APPLY THE LOWER OF COST AND NRV RULE TO ENDING INVENTORY
APPLY THE LOWER OF COST OR MARKET RULE TO ENDING INVENTORY
ESTIMATE THE COST OF INVENTORY USING THE GROSS PROFIT METHOD AND THE RETAIL INVENTORY METHOD
WHEN EQUIPMENT IS TRADED IN, COMPUTE THE GAIN OR LOSS ON THE TRANSACTION.....COMPUTE THE COST BASIS OF THE NEW ASSET....in other words, what would you record the new asset's cost at
COMPUTE THE COST OF THE FIXED ASSET
COMPUTE THE COST OF THE INTANGIBLE ASSET
COMPUTE THE cost of goodwill
WHAT IS DEPRECIATION....depletion....amortization
WHAT IS USEFUL LIFE....service life
WHAT IS THE ALLOCATION BASE....depreciable base
MOST POPULAR DEPRECIATION METHOD
HOW IS A CHANGE IN ESTIMATE ACCOUNTED FOR....prospectively or retrospectively
2 STEP APPROACH FOR IMPAIRMENT OF VALUE FOR PPE AND FINITE IA
EXPENDITURES SUBSEQUENT TO ACQUISITION ---DO YOU CAPITALIZE OR EXPENSE....like repairs/maintenance, additions, improvements, rearrangement
COMPUTE DEPRECIATION USING ALL METHODS
GROUP METHOD FOR DEPRECIATION.....WHY IS IT USED....FORMULA FOR COMPUTING DEPRECIATION
RECORD DEPLETION AND AMORTIZATION AFTER COMPUTING IT
WHAT IS DEPLETION....WHAT TYPE OF COST IS IT
COMPUTE NEW DEPRECIATION AFTER A CHANGE IN ESTIMATE
JOURNAL ENTRY FOR CORRECTING A MATERIAL ERROR AND REQUIRED DISCLOSURES
WHAT IS DEPRECIABLE BASE
HOW DOES AN ACCELERATED METHOD OF DEPRECIATION DIFFER FROM STRAIGHT LINE
ACTIVITY BASED ALLOCATION METHOD
PRIMARY METHOD OF DEPRECIATION USED
GROUP APPROACH AND THE COMPOSITE APPROACH
HOW IS A CHANGE IN DEPRECIATION METHOD HANDLED....HOW IS CHANGE IN ESTIMATE HANDLED...HOW IS CORRECTION OF AN ERROR HANDLED
WHEN DOES GAAP REQUIRE A RECOGNITION OF A LOSS FOR PPE AND FINITE ASSETS AND WHEN DOES GAAP REQUIRE A RECOGNITION OF A LOSS FOR GOODWILL
WHAT EXPENDITURES SHOULD BE CAPITALIZED AND WHICH SHOULD BE EXPENSED
COMPUTE DEPRECIATION, DEPLETION AND AMORTIZATION
RECORD JOURNAL ENTRIES FOR ALL TRANSACTIONS
COMPUTE IMPAIRMENT LOSS
COMPUTE THE BOOK VALUE
