Category: Financial Accounting Review

Property, plant and equipment include the assets that are expected to be used in operations for more than a year. Assets classified as property, plant

Noncurrent assets are the assets that are expected to be converted into cash after a year or normal operating cycle, whichever is longer. Noncurrent assets

Lower of Cost or Market (LCM) 1. At the end of each period, inventory is measured at the lower of cost or market. 2. Market

CURRENT LIABILITIES Accounting for Current Liabilities 1. Current liabilities: Liabilities that are expected to be paid within a year or normal operating cycle, whichever is

Inventory Recording Systems Periodic inventory system Perpetual inventory system   © AccountingInfo.com  

Inventory Turnover Ratios 1. Inventory turnover ratio = Cost of goods sold / Average inventory 2. Days in inventory = 365 days / Inventory turnover