TAILIEUCHUNG - Lecture Fundamentals of financial accounting (3e): Chapter 6 - Phillips, Libby, Libby

Chapter 6 - Internal control and financial reporting for cash and merchandise sales. Earlier chapters have focused on companies whose operating activities relate to providing services to customers, rather than selling goods. This chapter focuses on companies that sell merchandise to customers, and the way they control and report their operating results. | Controlling and Reporting Merchandise Sales Inventory Quantities Inventory Costs Financial Statements Unsold Inventory Balance Sheet Sold Inventory Income Statement 6- Part I The success of all merchandisers depends on their ability to sell large quantities of merchandise at prices that significantly exceed their cost. Knowing this, merchandisers spend a great deal of time and money tracking their inventory transactions. A strong accounting system plays three roles in this process: It provides information on inventory quantities so that managers can control inventory levels. It provides information on inventory costs so that managers can set appropriate selling prices. It provides information for preparing financial statements, which can be used to evaluate the amount of profit generated from merchandise sales in the current period. Part II Until inventory is sold, it is an asset reported at its cost on the balance sheet. After inventory is sold, its cost is removed from the balance sheet and reported on the income statement as an expense, called Cost of Goods Sold. The difference between the selling price (reported as Sales Revenue) and the Cost of Goods Sold is the gross profit earned by the merchandiser. Inventory Control Perpetual Inventory System Continuous Tracking Can Estimate Shrinkage Periodic Inventory System No Up-to-Date Records Can’t Estimate Shrinkage 6- A perpetual inventory system’s continuous tracking of transactions allows companies to keep just the right quantity of products on the shelves for just the right amount of time. Doing so saves companies a great deal of money in financing and storage charges. It also benefits consumers, who pay less for the products they buy. Another benefit of a perpetual inventory system is that it allows managers to estimate shrinkage, the politically correct term for loss of inventory from theft, fraud, and error. Because a perpetual inventory system records all goods purchased and sold, the ending .

• Kế toán - Kiểm toán
• Financial accounting
• Kế toán tài chính
• Fundamentals of financial accounting
• Internal control
• Financial reporting
• Merchandise sales
• Issues in financial accounting
• Financial statements
• Accounting standards
• Financial Accounting Standards Board
• Fundamental financial accounting
• Lecture Fundamental financial accounting concepts
• Financial statement
• Accounting cycle
• Accounting for accruals
• Lecture Financial accounting
• Accounting system
• Accounting activities
• Financial accounting practice
• Accounting information system
• Accounting terminology
• Reporting financial results
• Evaluating liquidity
• Business firms
• The financial reporting reform
• Accounting information
• Management accounting
• Accounting equation
• Accounting systems
• Decision making
• External financial reporting
• Accounting for business
• Lecture Accounting for business
• Financial accounting reports
• Statement of financial performance
• Accrual accounting systems
• Statement of financial position
• Mastering financial accounting essentials
• Financial accounting essentials
• Accrual accounting
• Income statement
• Accounting conventions
• Accounting for cash
• Accounting for receivables
• Computing uncollectible accounts expense
• Long term debt
• Accounting for long term debt
• Paper F3
• Revision kit 2016
• Accounting Financial
• Accounting Financial Review
• Financial Review accounting exam
• Study text 2016
• Language of business
• Double entry accounting system
• Credit terminology
• Merchandising businesses
• Accounting for merchandising businesses
• Accounting for inventories
• Cash discounts
• The accounting cycle
• International financial reporting standards
• Completing the accounting cycle
• Accounting worksheet
• Classified balance sheet