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33:010:272 Lecture Notes - Lecture 6: Bank Reconciliation, General Ledger, Bank Statement

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School
Rutgers University
Department
Accounting
Course
33:010:272
Professor
westcott

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Document Summary

Chapter 6 (continue: conservatism, purposely not to overstate ending income in order to not overstate net income (profit, lower-of cost or market b. i. Take whatever is lower between cost and market. Inventory errors: failure to count or price inventory correctly, not properly recognizing the transfer of legal title to goods in transit, errors affect both the income statement and balance sheet. Inventory errors affect the computation of cost of goods sold and net income in two periods. In order to figure out what"s overstate/understate -> plug it some random number: statement presentation and analysis, presentation a. i. In notes to financial statement a. i. 1. a. i. 2. a. i. 3. Costing method ( fifo, lifo, average-cost: financial ratios a. Inventory ratio: helps management department to make decisions a. i. *average inventory= beginning inventory+ ending inventory /2: days in inventory c. i. Measures the average number of days inventory is held c. ii. Chapter 7: fraud and internal control, fraud triangle a. i. Like when boss isn"t looking: rationalization d. i.

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Related Questions

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