6 - Multistep IS
The inventory shrinkage equation.
What is what EI should be - what EI actually is?
These are the three inventory costing methods
What are FIFO, LIFO, and WAC?
The method we adjust for.
What is the aging method?
These are the three depreciation methods.
When a bond sells for less than the par value.
What is a discount?
The COGS equation.
What is BI + Purchases - EI?
This is how we compute cost of goods available for sale.
What is beginning inventory + purchases?
The effect on the accounting equation when accounts are written off.
What is no effect?
This is how we calculate total depreciation.
What is acquisition cost - residual value?
When the stated rate is more than the market rate.
What is a premium?
This is when ownership is transferred once the inventory reaches its destination.
What is FOB destination?
This is the inventory costing method that results in the lowest taxes.
What is LIFO?
This is how we calculate net accounts receivable.
What is gross AR minus allowances?
This is how we calculate annual expense for straight line deprecation.
What is total depreciation divided by useful life in years?
This is how we calculate cash interest.
What is stated rate times face value?
The effect on accounts when inventory is purchased in cash using the periodic system.
What is an increase in purchases and a decrease in cash?
This is the inventory costing method that results in the highest NI.
What is FIFO.
This is how we record bad debt expense.
What is we increase bad debt expense and increase allowances?
The special thing we use in the depreciation expense column and the end of the double declining method.
What is a plug?
This is how we calculate interest expense.
What is carrying value times market rate?
The three new subtotals included on the multistep income statement.
This is the difference between LIFO/FIFO and WAC.
This is how we record a write off.
What is by decreasing accounts receivable and decreasing allowance for doubtful accounts?
The number we must calculate in double decline and how we calculate it.
The double decline rate (DDR), and 1/useful life in years * 2.
This is how we record a bond issuance when the bond is sold at a discount.
Increase cash, increase bonds payables and increase discount of bonds payable.