Cost Flow Assumptions

Cost Flow Assumptions First-in, First-out (FIFO) method Last-in, First-out (LIFO) method Weighted average method First-in, First-out (FIFO) method Old purchases … More

Inventory Analysis

Inventory Turnover Ratios 1. Inventory turnover ratio = Cost of goods sold / Average inventory 2. Days in inventory = … More

Cash and Receivables

CASH AND CASH EQUIVALENTS 1. Bank reconciliation: Adjustments from bank balance: Deposits in transit, outstanding checks. Adjustments from book balance: … More

Adjusting Entries

Adjusting entries are prepared to adjust account balances from cash basis to accrual basis.   ©  

Accruals and Deferrals

Accruals Accrued revenues and expenses are recognized before cash is received or paid. Under accrual basis accounting, revenues are recognized … More