FIFO and LIFO accounting

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    Fifo Vs Lifo Essay

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    sales is a major role in accounting for inventory. The matching principle is used to decide how much of the cost of the goods available for sale is deducted from sales and how much is carried forward as inventory and matched against future sales. Four very common methods used to assign costs to inventory and to cost of goods sold are as follows: (1) Specific identification; (2) First-In, First-Out (FIFO); (3) Last-In, First-Out (LIFO); (4) Weighted average. In this paper, the most common methods, LIFO and FIFO are discussed. Usage of each method causes the greatest differences in numbers reported on the balance sheet and income statement, and, ultimately, the financial statements. According to Jesswein…

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    address about different types of inventory valuation methods that has been used to compute the cost of goods sold under perpetual system, FIFO and LIFO cost flow, periodic system, FIFO and LIFO cost flow, weighted average cost, and moving average cost flow. Periodic System, FIFO cost flow The companies with inventory items of small unit cost update its inventory records at the end of an accounting…

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    Receivables Case Study

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    B. Generally accepted accounting principles permit "off-balance sheet" treatment of factored receivables and collateralized borrowings, thus enabling management to "window dress" the company's financial position.C. D. A) The company may have an immediate need for cash but be short of it. B) Generally accepted accounting principles permit "off-balance sheet" treatment of factored receivables and collateralized borrowings, thus enabling management to "window dress" the company's financial…

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    The current and noncurrent effect key ratios that investors use, and to compare against IFRS companies, the removable of the line item is simple which cannot be said for the reverse (IFRS all non-current allocation to current/non-current). Inventory Costing also have a strong impact on a company’s financial position as well as its operating income. Adidas costs its inventory under the weighted average method while Under Armour uses FIFO. Though both methods are allowed, behind the scenes…

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    Accrual Concept Paper

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    Question 2 a) Accrual and Prudence Firstly, one of the accounting concepts is accrual concept. According to defined accrual concept is recognizes the time lag between sales and purchases on one hand, and collection and payment of cash on the other (BusinessDictionary.com, 2014). Accruals Concept of accounting which requires that income and expense must be recognized in the accounting periods to which they relate rather than on cash basis. An exception to this general rule is the cash flow…

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    ACCOUNTING AND BUDGETING It is imperative that a nursing home Administrator understands the concept of accounting and budgeting. The Administrator must have a thorough understanding of the financial process. While the decision-making processes of nursing home administrators tend to revolve around the needs of senior residents, they must also balance the needs of personnel to be equally effective. Nursing home administrators also take charge of the financial aspects of their facilities by…

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    Goodwill Case Study

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    | |Cost of goods sold (above) …….………. |(4,258.2) | (4,261.6) | |Gross profit: | | | | As reported …..…………………………………. |$1,947.6 | | | Under FIFO ……………………………………… …

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    Accounting Degree

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    Accounting was a great degree to get in college because it has such a wide real world application. I have been an accountant, chief financial officer, vice president of operations, president, stockbroker, insurance agent and small business owner. Currently I am a small business owner with my wife in Roswell, Georgia. Advantages of a Small Business Owner with an Accounting Degree As a small business owner I wear many hats. My understanding of accounting enables me to do financial reporting and…

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    Specific Identification Method My wife manages Stark Carpet’s San Francisco showroom. Their offerings include antique Oriental and Persian rugs with retail values in the tens to hundreds of thousands of dollars. This kind of inventory fits the specific identification method’s criteria i.e., high-end/price, low volume sales that track each inventory item individually as either a cost of goods sold on the income statement or a remaining asset on the balance sheet. Dr. Walther presented specific…

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    Depreciation has been an encompassing part of accounting and cash flow assumptions are a main part of the financial statement. The periodic inventory system is a something to consider with recording inventory and reducing waste. Another topic to bring to light is goodwill and intangible assets for health care organizations. There are various ways for depreciation to be measured and determined based off the organizations finances. Much can be said about depreciation, intangible assets, and…

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