COMMERCE 1AA3 Study Guide - Final Guide: Income Statement, Financial Statement

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 1AA3
• Professor: Aadil Merali Juma

Document Summary

Chapter 5: receivables - 3 theory questions, 1 question on calculation or accounting. 3 theory question: allowance methods of writing off bad debts: % of sales and aging of. A/r and their effects on the financial statement: direct. Inventory, errors, discounts, cost flow assumptions, classified income statement. 2 questions theory, 10 questions calculations or accounting. Inventory errors and effects on taxes as well cancel out if error considered over 2 year period. In-class problem on inventory estimations using constant gross-profit percent. If periodic system, what are balance in books at time of estimation. 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 sold, operating income. Long term assets - 8 theory questions, 8 calculation questions or accounting. Revision of useful life and calculation of depreciation.