Chapter 6: Handout for Student Notes 1. What are the accounting principles and controls that relate to merchandise inventory? o Accounting principles Consistency principle Disclosure principle Materiality concept Conservatism o Control over merchandise inventory I 2. How are merchandise inventory costs determined under a perpetual inventory system? Specific identification method First-in, first-out (FIFO) method Journal entries under FIFO o Last-in, first-out (LIFO) method rce Journal entries under LIFO o Weighted average method Journal entries under weighted average 3.How are financial statements affected my using the different inventory costing methods? Income statement o Balance sheet 4 How is merchandise inventory valued using the lower-of-cost-or-market rule? 4.How is merchandise inventory valued using the lower-of-cost-or-market rule? o Computing the lower-of-cost-or-market o Recording the adjusting journal entry to adjust merchandise inventory 5. What are the effects of merchandise inventory errors on the financial statements? 6. How do we use inventory turnover and days' sales in inventory to evaluate business performance? Inventory turnover Days' sales in inventory 1 7.How are merchandise inventory costs determined under a periodic inventory system? (Appendix 6A) First in first-out (FIFO) method 7.How are merchandise inventory costs determined under a periodic inventory system? (Appendix 6A) o First-in, first-out (FIFO) method o Last-in, first-out (LIFO) method Weighted average method I I need every definition for each line of words and questions asked please Chapter 6: Handout for Student Notes 1. What are the accounting principles and controls that relate to merchandise inventory? o Accounting principles Consistency principle Disclosure principle Materiality concept Conservatism o Control over merchandise inventory I 2. How are merchandise inventory costs determined under a perpetual inventory system? Specific identification method First-in, first-out (FIFO) method Journal entries under FIFO o Last-in, first-out (LIFO) method rce Journal entries under LIFO o Weighted average method Journal entries under weighted average 3.How are financial statements affected my using the different inventory costing methods? Income statement o Balance sheet 4 How is merchandise inventory valued using the lower-of-cost-or-market rule? 4.How is merchandise inventory valued using the lower-of-cost-or-market rule? o Computing the lower-of-cost-or-market o Recording the adjusting journal entry to adjust merchandise inventory 5. What are the effects of merchandise inventory errors on the financial statements? 6. How do we use inventory turnover and days' sales in inventory to evaluate business performance? Inventory turnover Days' sales in inventory 1 7.How are merchandise inventory costs determined under a periodic inventory system? (Appendix 6A) First in first-out (FIFO) method 7.How are merchandise inventory costs determined under a periodic inventory system? (Appendix 6A) o First-in, first-out (FIFO) method o Last-in, first-out (LIFO) method Weighted average method I I need every definition for each line of words and questions asked please
