Financial Act Chpt 6 Notes

Should be included as inventory on the balance sheet

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Unformatted text preview: t inventory still belongs to consignor. Should be included as inventory on the balance sheet of consignor. • Buyback arrangements or Out on Approval: No sale has occurred; Inventory should still be included on the seller's balance sheet. 42 Inventory C: :hods GAAP allows for different inventory costing methods, to fairly allocate costs between ending inventory and cost of goods sold. Needed because inventory costs can change dramatically over time, which could have significant impacts on a company's financial statements. Only specific identification matches physical flow of goods. Whatever cost flow assumption used, it must be used consistently from year to year. • Specific identification: Cost of each item sold is individually identified and traced to...
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This note was uploaded on 01/22/2014 for the course ACG 2021 taught by Professor Linkovich during the Spring '08 term at University of South Florida.

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