FAF Ch5 Day2

  1. to get ending inventory with FIFO, start at the...
    bottom of purchases
  2. to get ending inventory with LIFO, start at the...
    top of purchases / beginning inventory
  3. Inventory Turnover =
    Image Upload 1
  4. Days' Sale In Inventory =
    Image Upload 2
  5. the Inventory Turnover ratio is
    how many times during a period a company sells its inventory
  6. 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
  7. If ending inventory is overstated, then COGS are
    understated
  8. if ending inventory is overstated, then Net Income is
    overstated
  9. If ending inventory is understated, then COGS are
    overstated
  10. If ending inventory is understated, then Net Income is
    understated
Author
achawla
ID
172184
Card Set
FAF Ch5 Day2
Description
FAF Ch5 Day2
Updated