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Essay text:
Gains & Losses 18
Earned / Realized or Realizable? 18
Revenue recognition at time of sale 18
Income recognition at times different from sale 19
If I record the revenues, should I record other items as well? 19
“Profits you can trust”, chapter 3 – Revenue recognition 19
Inventory Accounting 21
What is inventory? And basic definitions. 21
What are the various methods of inventory accounting? 21
What is the difference between periodic and perpetual inventory systems? 21
Be able to explain LIFO and FIFO? 21
What is the LIFO conformity rule and how does this differ from depreciation methods? 22
What is the LIFO reserve? 23
What does it mean to liquidate LIFO layers? What will be the impact on the financial statements? Why? Explain, “holding gains”...
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Common topics in this essay:
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