STUFF TO KNOW FOR ACCOUNTING

STUFF TO KNOW FOR ACCOUNTING - STUFF TO KNOW FOR ACCOUNTING...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
STUFF TO KNOW FOR ACCOUNTING Know how to find true balance per books and bank balance. Conservatism- selecting the alternative which favors income the least. Monetary principle- implies that the monetary unit is the most effective means of expressing changes in goods or services (?) ABD aka ADA is a contra current asset Impairment loss on goodwill is reported on the current income statement as an “other expense item” The double-declining method will give the greatest amount of depreciation over the initial two years. The depreciation method used for intangibles is Straight-line. Extraordinary items are reported on the income statement, net of tax, below income from continuing operations. When you collect a full payment that was previously written off as uncollectible, you debit cash and credit ADA Know how to do straight-line, double declining, and sum-of-the-year’s-digits depreciation methods. Know FIFO/LIFO theory (which method will give you highest/lowest COGS/inventory if the prices are rising/falling) In a trade in-problem, the new machine is recorded at list price minus trade-in
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

STUFF TO KNOW FOR ACCOUNTING - STUFF TO KNOW FOR ACCOUNTING...

This preview shows document pages 1 - 2. Sign up to view the full document.

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