COMMERCE 1AA3 Study Guide - Final Guide: Financial Statement, Earnings Before Interest And Taxes, Current Liability
Document Summary
Allowance methods of writing off bad debts: % of sales and aging of a/r and their effects on the financial statements. Direct write off method for bad debts and its effect on the financial statements. Inventory errors and effects on taxes as well cancel out if error considered over two year period. In-class problems on inventory estimations using constant gross-profit percent. Classified income statement and calculations of sub-totals such as net sales, net. Purchases, cost of goods purchased, cost of goods available for sale, cost of goods. Calculation of sales discounts in-class problem. Counting of inventory using fob terms see past exams written question 2008m2. Revision of useful life and calculation of depreciation. Purpose and definition of depreciation, how to choose different methods, the different methods available, their characteristics and appropriateness to situations (eg. accelerated methods or when to pick one method over another) What is accumulated amortization, carrying value, amortizable cost,
