Busi. 407 Notes

Busi. 407 Notes - flows o Inventory reported on B/S at...

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Study Guide: Assets Marketable securities: o Held to maturity: Bonds Book value on B/S o Trading: Stocks Market value on B/S Unrealized gains and losses go on I/S o Available for sale: Stocks Market value on B/S Unrealized gains and losses go in OE (comprehensive income) A/R: o Net Realizable Value equals (A/R minus Allowance for Doubt. Accounts) o Allow. For Doubt. Accounts also affects bad debt expense on I/S Inventory: o FIFO: During inflation higher NI, higher valued inventory, pay more taxes o LIFO: Lower NI (higher CGS), lower valued inventory, pay less taxes (better cash
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Unformatted text preview: flows) o Inventory reported on B/S at lower of cost or market o FIFO inventory = LIFO inventory + excess of FIFO over LIFO • Property, plant, and equipment (fixed assets): o Show on B/S as book value minus accumulated depreciation o Depreciation methods: Straight line: • Constant effect on NI over lifetime Accelerated: • Higher depreciation expense early = pay less on taxes early • Sum of years digits • DDB • Intangibles: o Goodwill: Stays same until it loses value Lost value goes to I/S as impairment expense...
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Busi. 407 Notes - flows o Inventory reported on B/S at...

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