Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following inventory accounting methods is acceptable under US GAAP?

FIFO (First-In, First-Out)

LIFO (Last-In, First-Out)

Weighted Average Cost

Specific Identification

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Verified step by step guidance

Understand that US GAAP (Generally Accepted Accounting Principles) allows multiple inventory accounting methods to value inventory and cost of goods sold.

Learn the definitions of each method: FIFO assumes the oldest inventory items are sold first, LIFO assumes the newest inventory items are sold first, Weighted Average Cost calculates an average cost for all inventory items, and Specific Identification tracks the cost of each individual item.

Recognize that the choice of inventory method can impact financial statements, including the cost of goods sold and ending inventory values, especially during periods of price fluctuation.

Understand that businesses choose an inventory method based on their operational needs, tax implications, and financial reporting goals, as all four methods are acceptable under US GAAP.

Review examples of how each method is applied in practice to solidify understanding of their differences and implications for financial accounting.