Acg 2021 exam 2 - Study guides, Class notes & Summaries

In a period of inflation, the costs allocated to ending inventory will approximate their current cost if a. the FIFO method is used b. the LIFO method is used c. the average method is used d. all of these a. the FIFO method is used In a period of inflation, the inventory cost flow method that results in the lowest income taxes is the a. FIFO method b. LIFO method c. average cost method d. gross profit method e. none of these b. LIFO method A company reports the following: Ending inventory $34...

Association of Certified Fraud Examiners (ACFE) Largest antifraud organization Occupational Fraud Use of one's occupation for personal enrichment through deliberate misuse or misapplication of the employing organization's resources. Internal Controls 1. Safeguard company's assets 2. Improve accuracy and reliability of accounting information Fraud Cases 90% involves the theft or misuse of company's resources. Another example is the manipulation of financial statements. Recent Scandals Enr...

Internal Controls a company's plan to 1) Safeguard the company's assets, and 2) Improve the accuracy and reliability of accounting information. (4) Framework for Internal Controls a framework to be used when designing internal controls systems including the control environment, risk assessment, control activities (preventative and detective), monitoring, and information and communication. (4) Separation of duties authorizing transactions, recording transactions, and maintaining control of re...

ACG 2021 Exam 1_ Chapters 1, 2, & 3 (1)

ACG 2021 Exam 2

Expense Recognition Principle match expenses with revenues in the period when the company makes efforts to generate those revenues Periodicity Assumption economic life of businesses can be divided into artificial time periods Revenue and Expense in accordance with generally accepted accounting principles Revenue Recognition Principle revenue organized in the accounting period in which the performance obligation is satisfied Accrual-Basis Accounting -transactions recorded in the periods in wh...

Cost of Goods Sold First on the income statement (Sales Revenue - Cost of Goods Sold = Gross Profit) Beginning Inventory + Purchases - Ending Inventory Advantages to Perpetual Inventory System Very detailed records of the cost of each item in inventory purchase and sale. Continuously shows inventory that should be on hand at any time. Better control over the inventories than a periodic system. Company knows/determines the cost of goods sold each time a sale occurs. Calculation of Cost of Goods...

Revenue Recognition Principle companies recognize revenue in the accounting period in which the performance obligation was satisfied. Expense Recognition Principle matches expenses with revenues in the period in the period when the company makes effort to generate those revenues Cash-Basis Accounting Revenues and Expenses are only recognized when cash is received Accrual - Basis Accounting Transactions recorded in the period in which the events occurred. (Revenue and Expense Principle) ...

ACG 2021 Exam 1 Chapters 1, 2, & 3.

Chapter 16 ACG 4111 Exam Study Guide deferred tax liability - ANSWER-If tax laws allow a company to postpone paying taxes on activities reported in the current period's income statement, the company must report a deferred tax liability because the company anticipates those activities will lead to future taxable amounts. deferred tax asset - ANSWER-if tax laws require the company to pay more tax than is indicated by the activities reported in the current period's income statement, the ...