AFM491 Study Guide - Midterm Guide: Interest Bearing Note, Dollar Tree, Equity Method

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM491
• Professor: Robert Ducharme

Document Summary

Chapter 7 cash and receivables: sales discounts (net vs gross, sales returns and allowances, bad debt expense, allowance method, % of credit sales method, short and long-term notes and loans receivable. Interest bearing notes: zero interest bearing notes, derecognition of receivables, secured borrowings, sales of receivables with/without recourse. Chapter 8-inventory: goods in transit fob shipping point vs fob destination, consigned goods, purchase commitments, purchase discounts, estimating cogs/inventory. Lifo, specific identification, weighted average (under perpetual and periodic system: gross profit percentage, retail inventory. Impairments-incurred loss model for both aspe(current mkt rate) and ifrs(historical mkt rate) Chapter 10-property plant and equipment: deferred payment terms, nonmonetary exchanges- (shares, asset exchanges, contributed assets and government grants, revaluation model. Land, buildings, leasehold improvements, biological assets, natural resources. E9-23 equity method with cost in excess of carrying amount-revised. On january 3, 2014 mego limited purchased 3,000 shares (30%) of the common shares of sonja corp for ,000.