New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Management 1A Week 6 Notes

by: Daniel Ochs

Management 1A Week 6 Notes Management 1A

Daniel Ochs

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

Notes cover chapter 6, 7A, and 7.
Principles of Accounting
D.S. Litt
Class Notes
25 ?




Popular in Principles of Accounting

Popular in Business, management

This 4 page Class Notes was uploaded by Daniel Ochs on Thursday May 5, 2016. The Class Notes belongs to Management 1A at University of California - Los Angeles taught by D.S. Litt in Spring 2016. Since its upload, it has received 18 views. For similar materials see Principles of Accounting in Business, management at University of California - Los Angeles.


Reviews for Management 1A Week 6 Notes


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 05/05/16
Thursday, May 5, 2016 Management 1A Chapter 7 [Page 239- 245] - Control of Cash - Balance Sheet Presentation: cash is a current asset - Management of Cash - Internal Control: management maintains control over all assets and liabilities - Bank Reconciliation: determines balance on bank statement • Balance Per Bank Records = Balance Per Books - Petty Cash: a way to pay for those little expenditures that come up all the time 1 Monday, May 2, 2016 Management 1A Chapter 6 [Page 201- 238] - Cost Flow Assumptions • First-In, First-Out (FIFO): cost of goods sold = cost of oldest available units • Last-In, First-Out (LIFO): cost of goods sold = cost of most recently purchased units Average Cost: cost of goods sold = per-unit weighted average cost • - Begging Inventory + Net Purchases = Merchandise Available for Sale = Ending Inventory + Cost of Goods Sold - Advantages and Disadvantages of LIFO and FIFO Linked to physical flow • • Matching • Valuation • Taxes • Opportunity for Income Manipulation • Difficulty in Earnings Prediction • Comparison of financial statements under LIFO and FIFO - LIFO Reserve = Ending Inventory (FIFO) - Ending Inventory (LIFO) = Cumulative difference in FIFO - LIFO inventory • LIFO Reserve = COGS (LIFO) - COGS (FIFO) - Assessing Inventory Management Inventory Turnover Ratios • - Purpose - Times Inventory Turnover = COGS / Average Inventory - Days Inventory Turnover = 365 days / Times Inventory Turnover - Estimation of Ending Inventory • Gross Profit Method: based on cost of goods sold computation 1 Monday, May 2, 2016 - Estimates inventory without counting anything (much faster and easier) - Gross Profit Method= Beginning Inventory + Net Purchases - Cost of Goods Sold • Retail Method: company must keep track of cost and retail of inventory - Determine Cost of Goods Sold at Retail Price - Determine Cost of Goods Sold at Cost Price - Determine Cost to Selling Price Ratio - Solve for Ending Inventory at Cost - Consignment sales: goods sold by others - Perpetual vs. Periodic Inventory • Perpetual: maintains a continuous record for each inventory item • Periodic: inventory account is not updated when inventory is sold - Net Purchases = Purchases of Inventory - Purchase Discounts - Purchase returns and allowances - Installment Sales Method - Long-Term Contracts • Percentage of Completion Method • Completed Contract Method 2 Monday, May 2, 2016 Chapter 7A [Page 230- 238] (Not tested) - Special Journals to make accounting easier and faster • Sales Journals • Cash Receipts Journal • Purchases Journal • Cash Disbursement / Payments Journal - General Journal Voucher System: ensures that expenditures are properly authorized • 3


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Jennifer McGill UCSF Med School

"Selling my MCAT study guides and notes has been a great source of side revenue while I'm in school. Some months I'm making over $500! Plus, it makes me happy knowing that I'm helping future med students with their MCAT."

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.