ACCT/504 ACCT504 ACCT 504 WEEK 3 DISCUSSION
- Devry University / ACCT 504
- 10 Mar 2018
- Price: $7
- Other / Other
ACCT 504 WEEK 3 DISCUSSION
Week 3 Discussion
Week 3: Merchandising Operations, Income Statements,
and Inventory Cost-Flow Assumptions
In this area, we will discuss the
accounting for inventory transactions of merchandising companies, the two
formats of preparing the income statement, and how to evaluate the
profitability of a merchandising company. We will also discuss how companies determine
the year-end inventory value and cost of goods sold using one of the cost-flow
assumptions. Finally, we will also examine the impact of choosing a certain
cost-flow assumption on the tax liability and other financial statement numbers
of a company.
Let's begin with this question: How
is the income statement of a merchandising company different from that of a
service company?
USA 
India