I need these explained and shown in detail to use as a study guide
- Cash and cash equivalents; restricted cash
- Bank overdrafts
- Cash discounts (sales discounts) vs. trade discounts
- Gross vs. Net method to record sales
- Bad debt expense: Balance sheet approach (% of rec.) vs. Inc. stmt. approach (% of sales)
- Bad debt journal entries
- Zero interest bearing notes vs. interest bearing notes
- Factoring receivables: with and without recourse
- Assigning receivables
- FOB shipping pt. vs. FOB destination (when does legal title of goods transfer)
- Accounting for petty cash
- Periodic vs. Perpetual
- Gross vs. Net methods for recording purchases
- LIFO, FIFO, Weighted Average
- Lower of Cost or Market (problem format)
- Net realizable value
- Relative Sales Method – Proportional Allocation (lump sum purchase)
- Purchase Commitments (journal entry – how to record a loss)
- Gross profit method (when can it be used and when can it NOT be used)
- What costs are included in land? Land Improvements? Building?
- Weighted-average Accumulated expenditures and avoidable interest – capitalization of interest
- Depreciation – systematic and rational allocation of cost; typically depreciation is calc. to the nearest dollar for a full month
- Depreciable Cost/Base
- Activity methods (variable in nature i.e. units produced or miles driven
- Straight-line method
- Decreasing Charge (Accelerated): Sum-of-the-Years’-Digits & Double Declining
- Partial period depreciation
- Fractional-year depreciation policies – typically depreciation is calculated to the nearest full month and dollar
- Other Property Issues: Revision of estimates, Impairment, and Depletion
- Purchased vs. Internally created intangibles
- Amortization – intangible are typically amortized using the straight-line method
- Goodwill- not amortized; only booked when purchased
