Ch 5 – retailers/wholesalersCh 5 – retailers/wholesalers operating cycle – cash to cashoperating cycle – cash to cash inventory systems – perpetual/periodicinventory systems – perpetual/periodic recording transactionsrecording transactions

• PurchasesPurchases• freight costsfreight costs• purchase returns and allowancespurchase returns and allowances• purchase discountspurchase discounts• sales of merchandisesales of merchandise• sales returns and allowancessales returns and allowances• sales discountsales discount• income statement – single step/multiple income statement – single step/multiple

Chapter 6 – classifying inventoryChapter 6 – classifying inventory Ownership of inventoryOwnership of inventory Inventory costingInventory costing

• Specific identificationSpecific identification• FIFOFIFO• LIFOLIFO• Average costAverage cost

Lower of cost or marketLower of cost or market Chapter 7 – internal control – principles, Chapter 7 – internal control – principles,

limitationslimitations Cash controls – cash managementCash controls – cash management Bank – bank reconciliationBank – bank reconciliation

Chapter 8 – types of receivables – accounts, Chapter 8 – types of receivables – accounts, notesnotes

Allowance method/bad debt expenseAllowance method/bad debt expense• Estimating allowanceEstimating allowance

Calculating interestCalculating interest Chapter 9 – plant assets – cost, different typesChapter 9 – plant assets – cost, different types Revenue expendituresRevenue expenditures Capital expendituresCapital expenditures Depreciation – partsDepreciation – parts MethodsMethods

• Straight lineStraight line• Declining balanceDeclining balance• Units of activityUnits of activity• RevisingRevising

Expenditures during useful lifeExpenditures during useful life ImpairmentsImpairments DisposalsDisposals Intangible assets – typesIntangible assets – types RatiosRatios

• Gross profitGross profit• Profit marginProfit margin• Inventory turnoverInventory turnover• Receivables turnoverReceivables turnover• Average collection periodAverage collection period• Return on assetsReturn on assets• Asset turnoverAsset turnover