Select Financial Statement Accounts Flashcards
What is the floor and the ceiling for replacement cost?
NRV less normal profit margin is the floor; NRV is the ceiling. Market CANNOT exceed the ceiling or be lower than the floor.
When prices are rising using FIFO, COGS is the ___ and provides the _____ net
income
lowest and highest
Costs are the same under a perpetual and periodic inventory system for what method?
FIFO
If market yield rate is higher than stated rate, the note is issued at a ____
discount; opposite for premium
Lower of Cost or Market is used for what inventory methods?
LIFO and Retail Method
Significant Accounting Policies include -
Depreciation methods, consolidation basis, interperiod tax allocation, inventory pricing, and revenue recognition methods.
Book Value per Share Formula
Total Stockholder’s Equity/# of Shares Outstanding
When stated interest rate > market rate, bonds are sold at a ___
Premium (i.e., 12% sold to yield 10%)
When stated interest rate < market rate, bonds are sold at a ____
Discount (i.e. 8% sold to yield 10%)