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Financial Accounting Integrated Learning By Professor St.John

Learn about financial accounting concepts and principles through real-world examples of companies like General Motors, Hewlett-Packard, Ford, IBM, Disney, Microsoft. Explore topics like cash and internal control, inventory management, FIFO or LIFO, multi-step income statement, and more.

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Financial Accounting Integrated Learning By Professor St.John

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  1. Financial Accounting Integrated Learning By Professor St.John

  2. FAIL URE! Not an Option!

  3. Please select a Team. • General Motors • Hewlett-Packard • Ford • IBM • Disney • Microsoft MSN

  4. Cash & Internal Control Inventory FIFO or LIFO Multi-Step Income Statement AR Allowance 200 200 200 200 200 400 400 400 400 400 600 600 600 600 600 800 800 800 800 800 1000 1000 1000 1000 1000 FAIL Scores

  5. Inventory200 Points Beginning Inventory + Purchases

  6. Beginning Inventory + Purchases • What are Cost of Goods Sold? • What are Cost of Goods Purchased? • What are Cost of Goods Available? • What are Net Purchases? Category Selection

  7. Inventory400 Points Periodic Inventory System

  8. Periodic Inventory System • What system adjusts Inventory to CGS? • What system adjusts Inventory to Purchases? • What system adjusts Purchases to Inventory? • What system adjusts Cost of Goods Available to ending Inventory and CGS? Category Selection

  9. Inventory 600 Points Perpetual System

  10. Perpetual System • When sold Inventory is not accounted for until yearend? • When sold Inventory is accounted for at yearend? • When sold Inventory is accounted for as it is sold? • What is a point in time? Category Selection

  11. Inventory 800 Points Yearend

  12. Yearend • When we have to take a physical inventory under periodic? • When we have to take a physical inventory under perpetual? • When we have to account for Inventory and CGS under periodic? • All of the above Category Selection

  13. Inventory1000 Points Cost of Goods Purchased

  14. Cost of Goods Purchased • What is Purchases less Freight-in, Purchase Allowances, Returns, and Discounts? • What is Cost of Goods Available less ending Inventory? • What is Cost of Goods Available less beginning Inventory? • What is Gross Purchases? Category Selection

  15. FIFO LIFO200 Points Cost of Goods Available less ending Inventory

  16. Cost of Goods Available less ending Inventory • What is Cost of Goods Purchased? • What is Net Purchases? • What is Cost of Sales? • What is Earnings per Share? Category Selection

  17. FIFO LIFO 400 Points For Tax Advantages

  18. For Tax Advantages • Why FIFO was started? • Why LIFO was started? • Why Average was started? • Why Specific Identification is used? Category Selection

  19. Daily Double

  20. What percentage of your current points would you like to wager on the next question? • 0% 25% 50% 75% 100%

  21. FIFO LIFO Daily Double FIFO

  22. FIFO • What cost flow assumption uses current costs on the Income Statement? • What cost flow assumption uses the oldest costs on the Balance Sheet? • What cost flow assumption uses the current costs on the Balance Sheet? • What cost flow is not allowed by iGAAP Category Selection

  23. FIFO LIFO 800 Points Not a Cost Flow Assumption

  24. Not a Cost Flow Assumption • What is LIFO? • What is FIFO? • What is Average? • What is Specific Identification? Category Selection

  25. FIFO LIFO 1000 Points Specific Identification

  26. Specific Identification • What cost flow shows current costs on the Balance Sheet? • What cost flow shows oldest costs on the Balance Sheet? • What cost flow has to follow physical flow? • What cost flow spreads cost over the units available? Category Selection

  27. Multi-Step Income Statement200 Points Net Sales

  28. Net Sales • What is Sales less Cost of Goods Sold? • What is Sales less Sales Taxes? • What is Sales less Sales Returns & Allowances? • What is Sales less Cost of Sales? Category Selection

  29. Multi-Step Income Statement 400 Points Selling Expenses

  30. Selling Expenses • What are Freight-In, Advertising,Sales Salaries, & Commissions? • What are Cost of Sales and Freight-Out? • What are Cost of Sales and Sales Taxes? • What are Freight-Out, Advertising, Sales Salaries, & Commissions? Category Selection

  31. Multi-Step Income Statement 600 Points Gross Margin

  32. Gross Margin • What is Sales less Cost of Goods Purchased? • What is Gross Sales less Net Sales? • What is Sales less Selling Expenses? • What is Sales less Cost of Sales? Category Selection

  33. Multi-Step Income Statement 800 Points Net Operating Income

  34. Net Operating Income • What is Gross Margin less Selling Expenses? • What is Gross Margin less Operating Expenses? • What is Gross Sales less Operating Expenses? • What is Gross Sales less Sales Returns and Allowances? Category Selection

  35. Multi-Step Income Statement1000 Points Net Earnings

  36. Net Earnings • What is Net Operating Income plus Other Income less Sales Taxes? • What is Retained Earnings less Dividends? • What is Net Operating Income plus Other Income less Other Expense less Income Taxes? • What is Gross Margin less Operating Expenses? Category Selection

  37. Accounts Receivable Allowance200 Points Direct Write-off Method

  38. Direct Write-off Method • What method is allowed by usGAAP? • What method doesn’t have an allowance? • What method doesn’t use Bad Debt Expense? • What method debits Accounts Receivable for an actual bad account? Category Selection

  39. Accounts Receivable Allowance400 Points Allowance based on the Income Statement Approach

  40. Allowance estimate based on the Income Statement Approach • What is a % of credit Sales? • What is a % of credit Sales adjusted for carryover balance? • What is a % of Accounts Receivable adjusted for carryover balance? • What is a % of Accounts Receivable? Category Selection

  41. Accounts Receivable Allowance 600 Points Adjustment Amount using the Balance Sheet Approach

  42. Adjustment Amount using the Balance Sheet Approach • What is the estimated amount less debit carryover balance? • What is the estimated amount less credit carryover balance? • What is the estimated amount ignoring carryover balance? Category Selection

  43. Accounts Receivable Allowance 800 Points Aged Accounts Receivable

  44. Aged Accounts Receivable What estimate is based on last years bad accounts by invoice date? What estimate is based on credit sales by invoice date? What estimate is based on yearend accounts receivable by invoice date? What estimate is based on direct write-off? Category Selection

  45. Account Receivable Allowance 1000 Points Credit Allowance for Bad Debts

  46. Credit Allowance for Bad Debts What is estimate and write-off? What is write-off and estimate? What is recovery and estimate? What is recovery and write-off? Category Selection

  47. Cash & Internal Control200 Points Internal Control Procedure

  48. Internal Control Procedures What is creating a ethical environment? What is leading by ethical example? What is limiting opportunity for fraud? What is tone at the top? Category Selection

  49. Cash & Internal Control400 Points Independent Internal Checks

  50. Independent Internal Checks What is verification by the audit firm? What is double checking your own work? What is conducting an internal control risk assessment? When a manager or internal auditor regularly checks someone else work? Category Selection

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