INCOME MEASUREMENT AND PROFITABILITY ANALYSIS
Discuss the general objective of the timing of revenue recognition and list the two general
criteria that must be satisfied before revenue can be recognized.
Discuss the pri
1. Explain the difference between a perpetual inventory system and a periodic inventory system.
2. Explain which physical quantities of goods should be included in inventory.
3. Determine the expendit
INVENTORIES: ADDITIONAL ISSUES
1. Understand and apply the lower-of-cost-or-market rule used to value inventories.
2. Estimate ending inventory and cost of goods sold using the gross profit method.
3. Estimate ending inventor
PLANT, PROPERTY AND EQUIPMENT (OPERATIONAL ASSETS) : ACQUISITION
Identify the various costs included in the initial cost of property, plant, and equipment,
natural resources, and intangible assets.
THE BALANCE SHEET AND FINANCIAL DISCLOSURES
The purpose of this chapter is to provide an overview of the balance sheet and financial
disclosures and to explore how this information is used by decision makers.
REVIEW OF THE ACCOUNTING PROCESS
Analyze routine economic eventstransactionsand record their effects on a companys financial
position using the accounting equation format.
Record transactions using the general journal f
TIME VALUE OF MONEY CONCEPTS
1. Explain the difference between simple and compound interest.
2. Compute the future value of a single amount.
3. Compute the present value of a single amount.
4. Solve for either the interest ra
CASH AND RECEIVABLES
1. Define what is meant by internal control and describe some key elements of an internal
control system for cash receipts and disbursements.
2. Explain the possible restrictions on cash and their implica
THE INCOME STATEMENT AND STATEMENT OF CASH FLOWS
1. Discuss the importance of income from continuing operations and describe its components.
2. Describe earnings quality and how it is impacted by management practices to manip
CURRENT LIABILITIES AND CONTINGENCIES
1. Define liabilities and distinguish between current and long-term liabilities.
2. Account for the issuance and payment of various forms of notes and record the interest on the
2). Direct cost- costs related to the particular cost object that can be traced in an economically
feasible way (cost effective). Tracked.
Indirect cost- costs related to the particular cost object that can not be traced in an economically
traceable way (