Get a LIFO
Costs that can be directly associated with a specific source of revenue is this type of expense recognition principle.
What is direct association?
This refers to the timing and amount of revenue reported by the company.
What is revenue recognition?
What is gain or loss on asset sale?
This ratio helps to determine how quickly inventory passes through the production process and results in sales.
What is the inventory turnover ratio?
Beginning inventory + Purchases - Ending inventory = this.
What is cost of goods sold?
This inventory costing method does not consider when inventory was purchased but rather the total cost to purchase all inventory units.
What is average cost method?
Examples of this include volume discounts, rebates, credits and price concessions.
This accounting concept is when we first think an assets useful life is 5 years but it changes to 7 years and a prospective adjustment made.
What is a change in accounting estimate?
This ratio will help to gauge the profitability of a company's operations.
What is return on net operating assets (RNOA)?
This is the net amount that the seller expects to collect and the value reported as AR on the balance sheet.
What is net realizable value?
In a time of rising prices, this inventory valuation method results in higher net income.
What is FIFO?
This refers to an entity's obligation to transfer goods or services to a customer for which the entity has received consideration from the customer.
What is a contract liability?
These are the 3 depreciation methods we learned in Chapter 8.
What is straight-line, double-declining balance and units of production?
This measures the number of times each year that the accounts receivable is converted into cash.
What is accounts receivable turnover?
Discontinued operations and restructuring charges are examples of this.
At year-end, inventory should be recorded at this to comply with GAAP.
What is lower of cost or market (LCM)?
Intentional or not, this type of reserve is when management builds up a reserve during good years that can be drawn down in subsequent years to increase reported income.
What is a cookie jar reserve?
This intangible asset is recorded only when one company acquires another company.
What is goodwill?
A decline in this ratio may help to understand if a company has a stale product line, change in product mix, new competitors in the market or a general decline in economic activity.
What is gross profit margin?
This term is for tangible or intangible assets with limited, estimable useful life.
What is a definite-lived asset?
The acronym LCNRV is the process used to report inventory value on the balance sheet.
What is reporting inventory at the lower of cost or net realizable value?
This is the second of the 5 steps to be followed in implementing the core revenue standard.
What is identify the performance obligations in the contract?
Patents, copyrights and trademarks are examples of this.
What are intangible assets?
This ratio measures how efficient management utilizes its plant assets.
What is PPE Turnover (PPET)?
This is the third of the 5 steps to be followed in implementing the core revenue standard.
What is determine the transaction price?