Accy 202 bonus qs for test 2 - For inventory with...

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The GROSS PROFIT PERCENTAGE reflects a company’s ability to charge premium prices and produce goods and services at low cost. Higher prices must often be sustained with higher costs, which can up any increase in gross margin. In a bank statement, bank provides customers with a list of monthly DEPOSIT, CHECKS CLEARED, ACCOUNT BALANCES, SERVICE CHARGES, INTEREST EARNED/COLLECTED, NOT SUFFICIENT FUNDS CHECKS Accounting does not play a role in PROVIDING INFO THAT ASSISTS IN MAXING THE COSTS OF CARRYING INVENTORY in the inventory management process. Factory manufacturing costs that are not raw material or direct labor costs are FACTORY OVERHEAD costs. For inventory with increasing costs LIFO is used on the tax return b/c it normally results in lower taxes. If LIFO is used on income tax return, it must also be used to calc. inventory and COGS for the financial statements. This is referred to as: LIFO conformity rule.
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Unformatted text preview: For inventory with increasing costs, if managers’ compensation is tied to profits, they may prefer FIFO. # of companies reporting a TECHNOLOGY intangible asset jumped by nearly 55% btw. 2001 and 2002. A lower or declining fixed asset turnover may indicate that a firm is EXPANDING. The accumulated depreciation balance for a given asset should never exceed COST-SALVAGE. At the end of an asset’s useful life the accumulated depreciation balance for a given asset is COST-SALVAGE. An asset’s depreciable base is equal to COST-SALVAGE. Under DDB, SL, and SYD methods, the total amount of depreciation that can be expensed over life of asset is equal to COST-SALVAGE. 2 methods used to estimate bad debt expense are percentage of credit sales and aging of accounts receivable. Credit card discounts, sales discounts, and sales returns and allowances are deducted from Sales Revenue for the purpose of calculating Net Sales....
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This test prep was uploaded on 04/13/2008 for the course ACCY 202 taught by Professor Finnegan during the Spring '08 term at University of Illinois at Urbana–Champaign.

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Accy 202 bonus qs for test 2 - For inventory with...

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