Accounting II Concepts

Front

Cost of Goods Sold (CGS).

Back

CGS is the cost of finished goods sold, crucial for calculating gross profit.

Front

Importance of Inventory Valuation.

Back

Inventory valuation affects the expense part of the net income equation.

Front

FIFO means First In, First Out. The first ones we purchased for resale are the first ones we sell.

Back

FIFO is an inventory valuation method where the oldest inventory items are sold first.

Front

Businesses may use LIFO to limit taxes by showing lower profits.

Back

Lower profits from LIFO can reduce tax liabilities, benefiting businesses in stable phases.

Front

FIFO in an inflationary period

Back

Lower Cost of Goods Sold (CGS), Higher Profit

Front

LIFO in an inflationary period

Back

Higher Cost of Goods Sold (CGS), Lower Profit

Front

Effect of inventory methods on profit

Back

Different methods affect profit based on economic conditions

Front

Financial Statement that Accumulated Depreciation appears on?

Back

Balance Sheet

Front

Financial Statement that Depreciation Expense appears on?

Back

Income Statement

Front

Cost of Good Sold

Back

Beginning Inventory + Net Purchases -Ending Imventory