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Accounting Study Guide by AccountingInfo.com

U.S. GAAP Codification IFRS International Standards Accounting Topics

U.S. GAAP Codification, IFRS, Accounting Terms, Accounting Jobs

Principles of Accounting, Intermediate Accounting, Advanced

Accounting

Perpetual Inventory System

Perpetual inventory system updates inventory accounts after each

purchase or sale.

Inventory subsidiary ledger is updated after each transaction.

Inventory quantities are updated continuously.

Periodic Inventory System

Periodic inventory system records inventory purchase or sale in

"Purchases" account.

"Purchases" account is updated continuously, however, "Inventory"

account is updated on a periodic basis, at the end of each accounting
period (e.g., monthly, quarterly)

Inventory subsidiary ledger is not updated after each purchase or

sale of inventory.
Inventory quantities are not updated continuously.
Inventory quantities are updated on a periodic basis.

Example 1 (Company A)

On May 1, 2016: Purchased 1,000 units of merchandise at $30 per

unit.

Under Perpetual inventory system

5/1/2016 Debit Credit
Merchandise 30,000
Inventory

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Accounts 30,000
payable

Under Periodic inventory system

5/1/2016 Debit Credit
Purchases 30,000
Accounts 30,000
payable

Under periodic inventory system, all purchases during the accounting

period are recorded in the "Purchases" account.

On May 6, 2016: Sold 200 units of merchandise at $50 per unit on

credit.

Under Perpetual inventory system

5/1/2016 Debit Credit
Accounts 10,000
Receivable
Sales 10,000

5/1/2016 Debit Credit

Cost of goods sold 6,000
Merchandise 6,000
inventory

Under perpetual inventory system, changes in merchandise inventory

account are recorded after each transaction.

Under Periodic inventory system

5/1/2016 Debit Credit
Accounts 10,000
Receivable
Sales 10,000

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Under periodic inventory system, the following journal entry is recorded

at the end of accounting period.
5/31/2016 Debit Credit
Merchandise 24,000
Inventory
Purchases 24,000

Quantity of merchandise inventory

= 1,000 units purchased - 200 units sold = 800 units left

Cost of merchandise inventory

= 800 units x $30 per unit cost = $24,000

5/31/2016 Debit Credit

Cost of goods sold 6,000
Purchases 6,000

Cost of goods sold

= Total purchases - Ending balance of merchandise inventory
= 1,000 units x $30 per unit cost - 800 units x$30 per unit cost
= $30,000 - $24,000 = $6,000

Ending Inventory and Cost of goods sold (Company A)

Ending inventory
= Beginning inventory + Purchases during the period - Cost of goods
sold
= $0 + $30,000 - $6,000 = $24,000

Cost of goods sold

= Beginning inventory + Purchases during the period - Ending
inventory
= $0 + $30,000 - $24,000 = $6,000

Example 2 (Company B)

On June 5, 2016: Purchased 600 units of merchandise at $35 per

unit.

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Under Perpetual inventory system

6/5/2016 Debit Credit
Merchandise 21,000
Inventory
Accounts 21,000
payable

Under Periodic inventory system

6/5/2016 Debit Credit
Purchases 21,000
Accounts 21,000
payable

Under periodic inventory system, all purchases during the accounting

period are recorded in the "Purchases" account.

On June 16, 2016: Sold 400 units of merchandise at $55 per unit on
credit.

Under Perpetual inventory system

6/16/2016 Debit Credit
Accounts 22,000
Receivable
Sales 22,000

6/16/2016 Debit Credit

Cost of goods sold 14,000
Merchandise 14,000
inventory

Under perpetual inventory system, changes in merchandise inventory

account are recorded after each transaction.

Under Periodic inventory system

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6/16/2016 Debit Credit

Accounts 22,000
Receivable
Sales 22,000

Under periodic inventory system, the following journal entry is recorded

at the end of accounting period.
6/30/2016 Debit Credit
Merchandise 7,000
Inventory
Purchases 7,000

Quantity of merchandise inventory

= 600 units purchased - 400 units sold = 200 units left

Cost of merchandise inventory

= 200 units x $35 per unit cost = $7,000

6/30/2016 Debit Credit

Cost of goods 14,000
sold
Purchases 14,000

Cost of goods sold

= Total purchases - Ending balance of merchandise inventory
= 600 units x $35 per unit cost - 200 units x$35 per unit cost
= $21,000 - $7,000 = $14,000

Ending Inventory and Cost of goods sold (Company B)

Ending inventory
= Beginning inventory + Purchases during the period - Cost of goods
sold
= $0 + $21,000 - $14,000 = $7,000

Cost of goods sold

= Beginning inventory + Purchases during the period - Ending

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inventory
= $0 + $21,000 - $7,000 = $14,000

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Review of Accounting Topics

Accounting Changes and Error Corrections, ASC 250

Accounting Equation
Accounting Journal Entries
Accounts Receivable
Accrual Basis Accounting
Accruals and Deferrals
Adjusting Entries
Asset Retirement and Environmental Obligations, ASC 410
Assumptions of Financial Reporting
Balance Sheet, ASC 210
Bank Reconciliation
Capitalized Advertising Costs, ASC 340
Cash and Cash Equivalents
Characteristics of Useful Information
Classification of Assets
Classification of Inventory
Classification of Liabilities
Classified Balance Sheet
Classified Balance Sheet Practice
Closing Journal Entries
Codification of U.S. GAAP, ASC 105
Compensation: Stock Compensation, ASC 718
Components of Stockholders' Equity
Comprehensive Income, ASC 220
Contingencies, ASC 450
Cost Flow Assumptions
Cost Method Investments, ASC 325
Cost of Inventory
Debits and Credits
Defined Benefit Plans: Pension, ASC 715
Depreciation Methods
Disposal of Property, Plant and Equipment
Distinguishing Liabilities from Equity, ASC 480
Earnings per Share, ASC 260
Elements of Balance Sheet
Elements of Financial Statements
Elements of Income Statement
Equity Method, ASC 323
Exit or Disposal Cost Obligations, ASC 420
Extraordinary and Unusual Items, ASU 2015-01
Forms of Business Organizations
Gain Contingencies, ASC 450
Generally Accepted Accounting Principles (GAAP)
Generally Accepted Accounting Principles, ASC 105
Goodwill and Other, ASC 350
IAS 1 Presentation of Financial Statements, Overview
IAS 1 Presentation of Financial Statements, Review
IAS 1 Presentation of Financial Statements, U.S. GAAP Comparison
IAS 2 Inventories, Overview
IAS 2 Inventories, Review
IAS 2 Inventories, U.S. GAAP Comparison
IAS 7 Statement of Cash Flows, Review

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IAS 7 Statement of Cash Flows, U.S. GAAP Comparison
IAS 8 Accounting policies, changes in Accounting Estimates and Errors, Overview
IAS 8 Accounting policies, changes in Accounting Estimates and Errors, U.S.GAAP Comparison
IAS 8 Accounting policies, changes in Accounting Estimates and Errors, Review
IAS 12 Income Taxes, Overview
IAS 12 Income Taxes, Review
IAS 16 Property, Plant and Equipment, Overview
IAS 16 Property, Plant and Equipment, Review
IAS 17 Leases, Review
IAS 18 Revenue, Review
IAS 19 Employee Benefits, Review
IAS 20 Accounting for government grants and disclosure of government assistance
IAS 21 The effects of changes in foreign exchange rates, Overview
IAS 21 The effects of changes in foreign exchange rates, Review
IAS 21 The effects of changes in foreign exchange rates, U.S. GAAP Comparison
IAS 23 Borrowing Costs, Overview
IAS 23 Borrowing Costs, Review
IAS 23 Borrowing Costs, U.S. GAAP Comparison
IAS 24 Related Party Disclosures, Review
IAS 26 Accounting and Reporting by Retirement Benefit Plans, Review
IAS 27 Separate Financial Statements, Overview
IAS 27 Separate Financial Statements, Review
IAS 27 Separate Financial Statements, U.S. GAAP Comparison
Income Statement, ASC 225
Income Statement, Extraordinary and Unusual Items, ASC 225
Intangibles Other than Goodwill, ASC 350
Interim Reporting, ASC 270
Internal Use Software, ASC 350
Inventory Analysis
Inventory Recording Systems
Inventory, ASC 330
Investments in Debt and Equity Securities
Investments: Debt and Equity Securities, ASC 320
Investments: Equity Method and Joint Ventures, ASC 323
Liquidity and Solvency Ratios
Loss Contingencies, ASC 450
Lower of Cost or Market (LCM)
Multiple Step Income Statement Practice
Net Income
Noncurrent assets
Nonoperating Income and Expenses
Notes Receivable
Offsetting, ASC 210
Operating Expenses
Overview of Investments in Other Entities, ASC 320
Owners Equity Journal Entry Example 21
Presentation of Financial Statements, ASC 205
Presentation of Financial Statements, Discontinued Operations, ASC 205
Profitability and Activity Ratios
Property, plant and equipment (PP&E)
Property, Plant and Equipment, ASC 360
Real Estate Sales, ASC 360
Receivables
Research and Development Arrangements, ASC 730
Research and Development Costs
Research and Development, ASC 730
Revenue Recognition, ASC 605
Revenue Recognition: SEC Staff Accounting Bulletin Topic 13, ASC 605
Statement of Cash Flows, ASC 230
Steps of Accounting Cycle
Stock Dividends, Stock Splits, ASC 505
The Objective of Accounting
Transfers of Securities: Between Categories, ASC 320
Treasury Stock, ASC 505
Types of Business Activities
Types of Financial Statements
Users of Accounting Information
Website Development Costs, ASC 350
Where can I find the text of IFRS standards?

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Principles of Accounting:

This section provides study guides for students in the principles of

accounting courses or introduction to financial accounting courses.

U.S. Tax Code by Section

International Financial Reporting Standards (IFRS)

International Accounting Standards (IAS)
IFRS News and Updates
IFRS for Small and Medium-sized Entities (IFRS for SMEs)

U.S. GAAP Codification of Accounting Standards

GAAP Codification Updates

Sources of U.S. GAAP

U.S. GAAP by Topic
Hierarchy of U.S. GAAP

Principles of Accounting Course Review

Intermediate Accounting Course Review
Advanced Accounting Course Review

Financial Statements
Examples of Financial Statements
Balance Sheet: Examples

Ratios for Financial Statement Analysis

Liquidity Analysis Ratios
Profitability Analysis Ratios Activity Analysis Ratios
Cash Flow Analysis Ratios
Capital Structure Analysis Ratios
Capital Market Analysis Ratios

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Balance Sheet
Income Statement
Statement of Cash Flows

Basics of Journal Entries

Accounting Journal Entry Examples
More Examples of Journal Entries

Accounting Equation
Double Entry Recording of Accounting Transactions
Debit Accounts
Credit Accounts

Asset Accounts
Liability Accounts
Equity Accounts
Revenue Accounts
Expense Accounts

Accounting Cycle
Journals and Ledgers
Adjusting Journal Entries
Trial Balance

Accrual Basis vs. Cash Basis Accounting

Accrual Basis Accounting
Cash Basis Accounting
Accrual Basis Accounting
Revenue recognition
Expense recognition

Bank Reconciliation
Accounts Receivable
Inventory Accounting
Depreciation Methods

Present Value, Future Value (PV, FV Conversion Tables)

Simple and Compound Interest Calculations

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50 Questions on Create your own eBooks

Accounting Journal Entries from iPhone and iPad
2012 Edition for iPhone and iPad (for iBooks and Kindle)

Accounting for General Users:

A guide to accounting for users who are interested in understanding

accounting reports. This section explains what users need to know to
understand and analyze accounting information provided in the financial
statements. No prerequisite is required to read this section.

CPA and Accounting Profession

How to become a Certified Public Accountant (CPA)

Accounting is an information system.

Users of accounting information
Financial accounting for external users
Managerial accounting for internal users

Examples of Financial Statements

Financial Statements Index

Balance Sheet: Examples

Balance Sheet
Income Statement
Statement of Cash Flows
Statement of Stockholders' Equity

Annual Report Project Resources

Elements of Financial Statements (SFAC No. 6)

Balance Sheet provides information about financial position of a

company.
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Examples of Asset Accounts

Examples of Liability Accounts
Examples of Stockholders' Equity Accounts

Income Statement provides information about the performance of a

company.
Earnings Per Share (EPS)
Revenue Recognition Principle
Examples of Revenue and Gain Accounts
Examples of Expense and Loss Accounts

Statement of Cash Flows provides information about the cash flow of

a company.
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities

Intermediate Accounting:

This section provides study guides for students in the intermediate

accounting courses. Following topics are discussed in this section.

Accounting Courses Online

Accounting for Cash and Receivables

Cash and bank deposits
Accounts receivable
Notes receivable
Allowance for doubtful accounts
Impairment of a Loan

Accounting for Inventories

First In First Out (FIFO)
Last In First Out (LIFO)
Dollar Value LIFO
Retail Inventory Method
Gross Profit Method
Lower of Cost or Market (LCM)
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Investments in Debt and Equity Securities

Trading securities
Available for sale securities
Debt securities

Property, Plant, and Equipment (PP&E)

Acquisition costs of noncurrent operating assets
Retirement of noncurrent operating assets
Capitalization of interest cost
Impairment of Long-Lived Assets

Goodwill and Other Intangible Assets

Loss and Gain Contingencies

Extraordinary Gains and Losses
Discontinued Operations

Earnings per Share (Basic and Diluted EPS)

Depreciation Methods
Straight Line Depreciation
Declining Balance Method
Sum-of-the-years-digits Method

Accounting for Bonds Payable

Price of bonds payable
Discount on bonds payable
Premium on bonds payable
Amortization of discount and premium
Early extinguishment of debts

Stockholders' Equity
Common stock
Preferred stock
Par value
Additional paid-in capital
Retained earnings
Treasury stock (Cost method, par value method)
Dividends (Cash dividend, Stock dividend)
Stock split
Initial Public Offering (IPO)
Subsequent Events
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Code of Professional Conduct for Accountants

Advanced Accounting:

This section provides study guides for students in the advanced

accounting courses. Following topics are discussed in this section.

Consolidated Financial Statements

Business Combinations
Accounting for Leases

U.S. GAAP by Codification Topic

105 GAAP Hierarchy

105 GAAP History

205 Presentation of Financial Statements

205-20 Discontinued Operations
210 Balance Sheet
210-20 Offsetting
220 Comprehensive Income
225 Income Statement
225-20 Extraordinary and Unusual Items
230 Statement of Cash Flows
250 Accounting Changes and Error Corrections
260 Earnings per Share
270 Interim Reporting

310 Impairment of a Loan

320 Investment Securities
320 Other-Than-Temporary Impairments, FSP FAS 115-2
320-10-05 Overview of Investments in Other Entities
320-10-35 Reclassification of Investments in Securities
323-10 Equity Method Investments
323-30 Investments in Partnerships and Joint Ventures
325-20 Cost Method Investments
330 Inventory
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340-20 Capitalized Advertising Costs

350-20 Goodwill
350-30 Intangibles Other than Goodwill
350-40 Internal-Use Software
350-50 Website Development Costs
360 Property, Plant and Equipment
360-20 Real Estate Sales

410 Asset Retirement and Environmental Obligations

420 Exit or Disposal Cost Obligations
450 Contingencies
450-20 Loss Contingencies
450-30 Gain Contingencies
480 Redeemable Financial Instruments

505-20 Stock Dividends, Stock Splits

505-30 Treasury Stock

605 SEC Staff Accounting Bulletin, Topic 13

605-25 Revenue Recognition - Multiple Element Arrangements

715-30 Defined Benefit Plans - Pension

718 Share-Based Payment
730 Research and Development
730-20 Research and Development Arrangements

805 Business Combinations

810 Consolidation
810 Noncontrolling Interests
810 Consolidation of Variable Interest Entities, SFAS 167

815 Derivatives and Hedging Overview

820 Fair Value Measurements

820 Fair value when the markets are not active, FSP FAS 157-4
825 Fair Value Option

830 Foreign Currency Matters

830-20 Foreign Currency Transactions
830-30 Translation of Financial Statements
835 Interest
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835-20 Capitalization of Interest

835-30 Imputation of Interest

840 Leases
840-20 Operating Leases
840-30 Capital Leases
840-40 Sale-Leaseback Transactions
845 Nonmonetary Transactions

855 Subsequent Events

860-20 Sale of Financial Assets, SFAS 166
860-50 Servicing Assets and Liabilities, SFAS 156

985-20 Costs of software to be sold

International Financial Reporting Standards (IFRS)

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