Question Answer
Q- Distinguish between the single step income statements versus the multiple step income statement.
Q- Describe the difference between perpetual and periodic inventory.
Q- Share some examples of when a company might want to use lower of cost or market in valuing the inventory
Q- What are the three different inventory cost flow assumptions commonly used in commerce and allowed by generally accepted accounting principles?
Q- How would you describe the key internal controls that should be in place to protect cash in a cash rich environment such as a merchandiser?
Write a 200- to 300-word paragraph answering the following questions:
•How would you calculate cost of goods sold?
•What items make up cost of goods sold?