ACC 231 Study Guide - Midterm Guide: Current Liability, Accounts Payable, United States Treasury Security

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15 Sep 2018
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Practice questions: understand the difference between the physical flow of costs through the business and the flow of costs through the accounting records. Flow of costs through the business and flow of costs through the accounting records: Physical flow: how goods are stocked and how they are removed when dole. Cost flow: inventory method used by accounting department. Inventory xxx xxx xxx xxx xxx xxx: what is the most popular inventory costing method, fifo: under the fifo (first-in, first-out) method, the cost of goods sold is based on the oldest purchases. Fifo costing is consistent with the physical movement of inventory for most companies. Fifo leaves in ending inventory the last ---the newest costs: lifo: under the lifo (last-in, first-out) method, the cost of goods sold is based on the most recent purchases. Cost flow through accounting records would be nearly opposite to physical flow: average cost: the cost of goods sold is based on the weighted average of purchases.

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