Gross Margin • Gross Margin percentage of Sales • Income Before Taxes • Income Tax Expense • Pre-tax return on sales‚ and pre-tax return on assets Using LIFO vs. FIFO affects the ability to directly compare results because of the impact on gross margin and profit. Assuming merchandise costs are rising over time‚ accounting under LIFO will understate the net income (profit) for the current period by assigning the revenue to the highest cost merchandise. Assuming two companies had similar
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the most recent costs to cost of goods sold is a. FIFO b. LIFO c. Average d. specific identification 12. Inventory costing methods place primary emphasis on assumptions about a. flow of goods b. flow of costs c. flow of goods or flow of costs depending on the method d. neither flow or goods or flow of costs 13. The inventory costing method that reports the most current prices in ending inventory is a. FIFO b. Specific identification c. LIFO d. Average cost The following lots of a particular
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Key Formulas SEE Articulation- Pg. 16 Income= Revenues - Expenses Assets = Liabilities + Equity Gross Profit = Sales Revenue- COGS Pg. 12 Assets (Listed in order of solvency) Cash………………………………………………………………..$1‚955 Non-Cash………………………………………………………..13‚043 Total Assets….....................................................$14998 Current yr net income % Return on = Net Income = [(Prev. yr S/E + Current yr. S/)/2] Equity (ROE) Average S/E Pg. 21 Beginning retained Earnings + Net Income
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|Accounting I (ACC 101) | | | |2012 | |Kroger Co (KR:New York) |Project | Yakub Hashim Noor 9403 American Collage Dubai
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the firm have? A= $97‚118 3.2 Inventory accounting: Differentiate between FIFO and LIFO. A= FIFO stands for First In‚ First Out‚ which means the goods that are unsold are the ones that were most recently added to the inventory. Conversely‚ LIFO is Last In‚ First Out‚ which means goods most recently added to the inventory are sold first so the unsold goods are ones that were added to the inventory the earliest. LIFO accounting is not permitted by the IFRS standards so it is less popular. It does
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Financial Accounting Summary Financial Accounting – Summary Notes Financial Accounting – Summary Notes 1 Financial Statement Basics 3 Understanding of the 3 financial statements – (balance sheet‚ income statement and statement of cash flows). What does each financial statement represent? 3 What is the structure of each statement? 3 What is the link between the three statements? 4 Understanding of the basic mechanics of financial accounting – (debits‚ credits‚ transaction journal entries‚ adjusting
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PRINCIPLES OF ACCOUNTING I ACCT220 MIDTERM EXAMINATION REVIEW (Chapters 1 thru 6) Chapter 1 1. The basic accounting equation may be expressed as a. Assets = Equities. b. Assets – Liabilities = Owner’s Equity. c. Assets = Liabilities + Owner’s Equity. d. all of these. 2. Owner’s equity is increased by a. drawings. b. revenues. c. expenses. d. liabilities. 3. Collection of a $500 Accounts Receivable a. increases
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Sales revenue: (167‚000 + 49‚400) – 50‚600 + 47‚120 = 212‚920 b. Purchase of goods: 146‚300 – 26‚160 + 33‚080 = 153‚280 c. COGS: 36‚600 + 153‚280 – 38‚920 = 150‚960 d. Gross margin: 212‚920 – 150‚960 = 61‚960 Question 23. FIFO: LIFO: March 300 units @ $13 = $ 3‚900 March 300 units @ $13 = $ 3‚900 June 300 “ @ $13 = 3‚900 June 600 “ @ $ 9 = 5‚400 300 “ @ $ 9 = 2‚700 October 500 “ @ $11 = 5‚500 October 400 “
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InvUnit 8 Overview Inventories - Part 1 This unit covers Chapter 6 which includes an overview of the controls needed for inventories‚ explanation of the three inventory cost flow assumptions (FIFO‚ LIFO and Average Cost methods) and using these inventory costing methods under a perpetual inventory system Chapter 6: "Inventories" Chapter 6: "Inventories" describes how companies maintain control over their inventories and account for the inventory costs as inventories are purchased and sold.
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uses LIFO is the mining industries. Assuming they have a pit‚ they are filling it up with coal they dig up. The first coal they sell will be from the top (last coal put in the pit)‚ and last one sold will be the ones in the bottom (first coal put in the pit)‚ therefore LIFO. There are many other industries with a similar setting where the last one put in would be the first one sold. 4. The automobile dealer would not be wrong to use LIFO‚ however the automobile dealer should consider FIFO for
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