MGT120H5 Lecture Notes - Lecture 10: Cash Flow Statement, Book Value, Ddb Worldwide
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MGT120H5 Full Course Notes
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Review of ch. 6: cost of inventory, account for inventory, perpetual, periodic, costing inventory methods, specific id, weighted average, fifo, accounting principles, comparability, disclosure. Lower of cost-and-net-realizable value rule: nrv = (cid:862)market value(cid:863, effect of inventory errors, cost of goods sold model, ratios, gross profit percentage. Inventory turnover: review question, 400 units of inventory on hand, costing each. According to sales and purchases listed, what is cost of inventory using fifo method: 7/25: 300 units x = , 7/15: 100 units x = , = 400 units at ,000, ,000. Chapter 7: property, plant, and equipment, and intangible assets. Lands, buildings, machinery and equipment, etc: held for use in the business, cost of these assets is the purchase price + any other amount paid to acquire in and make it ready for use, ex. Improvement(cid:863): because paving depreciates, though land doesn"t, ex. Roof would also be separated from building (depreciates at different times)
