COMM 311 Midterm: Midterm Notes - Ch. 1-6.docx

• School: Queen's University
• Department: Commerce
• Course: COMM 311
• Professor: Philip Osanic

Document Summary

All conditions must be met: (a) amount of revenue can be measured reliably (b) probable that economic benefits associated with transaction will flow to entity (c) stage of completion of transaction at end of period can be measured reliably (d) costs incurred and costs to complete transaction can be measured reliably. Perpetual system: directly keeps track of additions to and withdrawals from inventory can determine inventory quantity on hand and cogs from accounting records at any point in time timely due to advancing technology and decreasing data mgmt. costs companies still need to conduct an inventory count b/c perpetual record might not match actual inventory quantities beg. Periodic system: does not keep continual track of inventories and cogs on financial stmt date, company conducts an inventory count to determine ending inventory quantity and applies product costs to these quantities to determine cost of ending inventory: cogs is then calculated based on everything else beg.