211c8m1 - Introduction to Financial Accounting Chapter 8,...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Introduction to Financial Accounting AMIS 211 – Professor Marc Smith 1 Chapter 8, Module 1 Chapter 8, Module 1 - Inventory Slide 1 AMIS 211 Introduction to Financial Accounting Professor Marc Smith Chapter 8 Module 1 Chapter 8 Module 1 Hi everyone. Welcome back. In this particular chapter, we want to deal with accounting for our inventory. Now, if you will go with me to the next slide…
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Introduction to Financial Accounting AMIS 211 – Professor Marc Smith 2 Chapter 8, Module 1 Slide 2 Chapter 8 Module 1: Sales of our Product Sales of our Product Question: Which financial statement accounts are affected? Income Statement Balance Sheet 1. Sales Revenue 1. Accounts Receivable 2. Cost of Goods Sold 2. Inventory Let’s sort-of lay the scene. And, what we are going to deal with in this chapter and we have already dealt with it in a previous chapter is: accounting for sales of our product. The big question that we have to answer is: Which financial statement accounts are affected when we sell our product? What accounts are affected and which financial statements? All of them, right? On the Income Statement, we affect the Sales Revenue and the Cost of Goods Sold account. On the Balance Sheet, we affect Accounts Receivable and Inventory. Those are four (4) big accounts—four (4) main accounts.
Background image of page 2
Introduction to Financial Accounting AMIS 211 – Professor Marc Smith 3 Chapter 8, Module 1 So, when you sell your product that is your primary activity. That is a big thing. That has a major impact on the financial statements. In a previous chapter, we dealt with the effect on Sales Revenue and Accounts Receivable—the first ones listed on the Income Statement and Balance Sheet. In this chapter, we want to focus on the costs. The expense: Cost of Goods Sold and the asset: Inventory. How do sales of our product impact those two items? Go ahead to the next slide with me. Slide 3 Chapter 8 Module 1: Inventory Inventory is the product you sell to your customers. QUESTION: When do the inventory costs get expensed on the income statement?
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 10

211c8m1 - Introduction to Financial Accounting Chapter 8,...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online