ACTG 2011 Study Guide - Final Guide: Weighted Arithmetic Mean, Finance Lease, Effective Interest Rate

• School: York University
• Department: Accounting
• Course: ACTG 2011
• Professor: Steven Castellucci

Document Summary

*ind average___ by adding the beginning and end then divide by two* For interchangeable items fifo or weighted average cost. Fifo irst in irst out: expenses the inventory that has been there the longest irst. Average cost: average cost of inventory on hand determine cogs and ending inventory. Approved contract (writen, oral, implied), commited to perform obligaion. Step 2: idenify the performance obligaions in the contract. Step 4: allocate the transacion price to performance obligaions. Step 5: recognize revenue when enity saisies performance obligaion. See if control transfers over ime or a point in ime. Over ime: simultaneously receives beneit, customer controls, no alternaive use to the selling enity. A point in ime: right to payment, risk rewards and ownership, legal itle, accepted asset, transferred physical possession. Purchase price, costs necessary to puing the asset into use, deduct proceeds of selling anything produced by the asset. Cost of seing up a new business is excluded.