Prin2mem - the impact of using different costflow...

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ACC 203. EXAM #2 MEMO. Exam date is noted on syllabus: TUESDAY, NOVEMBER 10 This memo is intended to give you an idea of topics that will be addressed on the second exam. It is not intended to include every possible topic in detail, only to give you a guide. The exam will be roughly 75% technical problems and 25% conceptual questions. Accounting for Short-Term Receivables. Estimating and recording uncollectibles: percentage-of-receivables method and percentage-of -sales method. Understanding the meaning and purpose of the accounts used to record estimated uncollectibles. Why do we need them? Write-off of uncollectible accounts and how this creates debit and credit balances in the Allowance account. Understanding pros and cons of estimation (GAAP) vs. "direct write-off" (not GAAP) methods. Accounting for Inventory. Computing Cost of Goods Sold and Ending Inventory for a periodic inventory system using LIFO and FIFO. Understanding the purpose of inventory costflow assumptions—why we need them—and
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Unformatted text preview: the impact of using different costflow assumptions on the balance sheet and income statement. Which is “best?” Computing LOCOM value of ending inventory and making the entry to record write-down. Understanding the meaning and impact of LOCOM. Exactly how is it a good example of “conservatism” at work? Accounting for Long-Term Assets. Capitalization and expensing decisions. Doing straight-line depreciation, including partial years. Computing gain and loss from sale of assets (after straight-line depreciation) and making journal entry to record. Understanding the impact of different depreciation methods on the balance sheet and income statement. Understand impact of write-offs and write-downs of long-term assets and make entries. Understand capitalization and expensing concepts related to intangible assets....
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