Intermediate Accounting & Analytics I Exam 3 Study Guide

University:
Central Piedmont Community College
Course:
ACC 220 | Intermediate Accounting I
Academic year:

2022
Views:

260

Pages:

4
Author:

ilikemyicons0y5

Intermediate Accounting & Analytics I Exam 3 Review STRUCTURE: 30 multiple choice (60 points): Chapter 8 – 15 questions Chapter 9 – 15 questions 4 problems: Problem 1 (10 points) – Chapter 8 Problem 2 (10 points) – Chapter 8 Problem 3 (10 points) – Chapter 9 Problem 4 (10 points) – Chapter 9 CONTENT: Chapter 8 – Inventories: Measurement Inventory Overview Inventory refers to the assets a company: • Intends to sell in the normal course of business • Has in production for future sale or • Uses currently in production of goods to be sold Cost of goods sold is the expense related to inventory Perpetual Inventory System • Continually adjust the inventory account for each change in inventory caused by a: • Purchase, • Sale, or • Return of inventory • Continually adjust the cost of goods sold account each time goods are: • Sold • Returned by a customer • Allows management to: • Determine goods on hand on any date • Determine the number of items sold during a period Periodic Inventory System • Adjusts the inventory account and records cost of goods sold only at the end of each reporting period • Records merchandise purchases, purchase returns, purchase discounts, and freight-in in temporary accounts • Determines period’s cost of goods sold by combining temporary accounts with the inventory account: