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

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

Financial Accounting

4. Merchandising Operations

Cost of Goods Sold - Perpetual Inventory vs. Periodic Inventory

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Multiple Choice

Which of the following methods are commonly used for costing inventory under both perpetual and periodic inventory systems?

Last-In, First-Out (LIFO)

Weighted Average Cost

First-In, First-Out (FIFO)

Specific Identification

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Verified step by step guidance

Understand the concept of inventory costing methods: Inventory costing methods are techniques used to assign costs to inventory and cost of goods sold. These methods impact financial statements and tax calculations.

Learn about the perpetual and periodic inventory systems: The perpetual system continuously updates inventory records, while the periodic system updates inventory records at the end of an accounting period.

Explore the Last-In, First-Out (LIFO) method: Under LIFO, the most recent inventory purchases are assumed to be sold first, leaving older inventory as ending inventory. This method is applicable to both perpetual and periodic systems.

Understand the Weighted Average Cost method: This method calculates the average cost of all inventory items available for sale during the period. It is suitable for both perpetual and periodic systems.

Examine the First-In, First-Out (FIFO) and Specific Identification methods: FIFO assumes the oldest inventory is sold first, while Specific Identification tracks the cost of individual items. Both methods are compatible with perpetual and periodic systems.