COMM 3105 Chapter 3: Accounting Information System & Measurement Issues
14 Jan 2019
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Determines the items being measured how the item would be or could be used by market participants. The market that the item would be ought and sold in. If a model is being used to measure fair value, which model it is. Prove the mathematical equity between dr. and cr. Made at the end of an accounting period - required when prepare financial statements. Some costs expire with the passage of time. Prepare for the start of a new financial reporting period. Sales are directly recorded in the inventory account as they occur. Physical count of items are done regularly to make sure the accuracy. Inventory account is unchanged during the period - represents the beginning amount through out the period. ending amount. Closing out at the end of the period and record the. Made at the beginning of next accounting period. Use prices and other information generated from market transactions involving identical or similar transactions.
