FAF Ch5 Day2

to get ending inventory with FIFO, start at the...

bottom of purchases
to get ending inventory with LIFO, start at the...

top of purchases / beginning inventory
Inventory Turnover =
Days' Sale In Inventory =
the Inventory Turnover ratio is

how many times during a period a company sells its inventory
what does the Days' Sale In Inventory ratio tell us?

the number of days you can sell from your inventory if no new items are purchased
If ending inventory is overstated, then COGS are

understated
if ending inventory is overstated, then Net Income is

overstated
If ending inventory is understated, then COGS are

overstated
If ending inventory is understated, then Net Income is

understated

Author

achawla

172184

Card Set

FAF Ch5 Day2

Description

FAF Ch5 Day2

Updated

2012-09-20T17:21:42Z

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