Lecture Notes for Chapter 8
Merchandising Company: Purchases goods that are primarily in the finished form. They
do not produce, so normally has only one type of inventory.
Manufacturing Company: Usually produces the goods they sell.
Lecture Notes for Chapter 5
New Revenue Recognition Standard by FASB:
Accounting Standards Update (ASU) No. 201409: Revenue from Contracts with
Core Principle: Companies recognize revenue when goods or services are transfer
Lecture Notes for Chapter 2
Review of the Accounting Process
The Basic Model Accounting Equation:
Double Entry Bookkeeping
Each transaction has a dual effect on the accounting equation (dualityofeffects).
The double-entry system is used to process transac
Lecture Notes for Chapter 9
Inventories: Additional Issues
A. ReportingLower of Cost and Net Realizable Value
Inventories are initially recorded at historical cost.
Subsequently if it is determined that the probable future economic benefits from the
Lecture Notes for Chapter 4
The Income Statement*
Used to summarize the profit-generating activities that occurred during a
Many perceive this to be the most useful in predicting future profitability.