6 i 7 Flashcards
inwentaryzacja
PHYSCIAL INVENTORY
it involves counting, weighting or measuring each kind of inventory on hand, it should be taken near the end of the accounting period or on a day when the year ends. You have to do it every year.
Work in progress in which company
If a company produces goods there will always be a work in process (progress), but it depends on the size of the raw materials (for example making bread will not be tracked)
komis
Consigned
goods which are sold, which aren’t owned by the seller
Consignee
owns possession on the goods, but it’s not their inventory (it still belongs to the owner)
Koszt produkcji
Product costs- always become assets, they are not expenses at first
Koszty okresowe
Period costs – they are expenses but not always. Sometimes they can be assets.
Koszty wydziałowe produkcji pośrednie
Depreciation of machinery is being added here (period cost every month/year
Storage costs
Storage cost doesn’t increase inventory costs, because it is not necessary
You can sell something right away. Cost are not needed unless they are (for example cheese or wine needs to be stored and it that case storage is added, because it is necessary)
COST FLOW METHODS- WAY TO DECIDE WHICH GOODS WHERE SOLD
Not Interchangeable goods (for example yacht, cars)
Interchangeable -you can’t use LIFO, you can use FIFO or weighted average cost
FIFO
FIFO= LISH (LAST IN STILL HERE)
Average cost per unit- done at the end of the year
You can use different methods for different inventories, but you have to use the same method for the same type of inventory
LIFO
LIFO=FISH (FIRST IN STILL HERE)
You show in the value of cost, but if you sell for lower price then cost, then you show it in the selling price
Odpis
A write off- difference between selling price and cost when you sell gods cheaper then you bought
Obrót zapasów
Inventory turnover- how many times per period the company was able to sale their inventory
Czas obrotu zapasów
Days in inventory- how many days you have to wait to sell your inventory
Types of receivables
- Accounts receivables – when you sell something and expect a payment later
- Notes receivable – needs to be written, they include interest payment
- Other receivables – interests, loans to officers (like CEO, COO), advances In employees, income taxes redundable etc.
Uncollectible Accounts
- Direct write-off method – receivables are not recognized unless you’re certain that you’ll get or not get them; they are written-off (są odpisywane) at the very last moment
- Allowance method – you estimate uncollectibles
- Allowance - obciążenia
Obliczanie należności
They are measured at net realizable value (it’s not what we demand to get but what we expect to receive – it can be different; it’s how much cash we’re going to get from receivables).
For example, in balance sheet, if there’s written “accounts receivable, less allowances of $58” and there’s 17,874 in this entry, 17,874 are company’s expectations, and 17,932 (+$58) are company’s demands.
Sales on account raise possibility of accounts not being collected. Seller records losses that result from extending credit as Bad Debt Expense (nieściagnięta część należności jest wliczana w koszta).
ostrożność
Conservatism
Pojawienie się nowych transakcji
Jeśli w ciągu roku pojawiają się nowe transakcje zmienia się tylko konto accounts receivable, drugie konto z niepewnymi należnościami jest aktualizowane tylko raz, na koniec roku (zazwyczaj, nie zawsze).
Szacowanie (nie)ściągalnych należności
Percentage-of-sales: sales were $1000000, 2% of them won’t be paid.
Percentage-of-receivables: at year’s end our receivables are $200000, 4% won’t be paid (IAS says this method needs to be used, not the sales one).
Aging schedule - you have to divide your receivables based on their age.
Factor (faktor)
company charging a commission for collecting receivable from custome
Działanie faktora
If there’s a sale without guarantee, only the factor needs to worry about the payment from customers.
If it’s a sale with guarantee, the seller needs to pay the factor and expect money from the customer again.
Credit/debit card sales
With debit card, sellers get money from customers right away. With credit card, it takes more time.
Notes receivable
Notes receivable are used to settle accounts receivable, e.g. an invoice saying that customer has to pay $100 until 10th May. If customers says he can’t pay until that day we can postpone it, but demand an interest and signing a note.
To the payee (person paying), the promissory note is a note receivable.
To the maker (person getting paid), the promissory note is a note payable.
