This is a draft cheat sheet. It is a work in progress and is not finished yet.
Service Entities
Profit for the period = commissions - fees - Operating Expenses (admin. + distribution expenses) |
Retail Entities
Profit for period = sales revenue - COS - (Operating + financial expenses) |
Inventories Definition
Assets that are held: for sale in the ordinary course of business; in the process of production; in the form of materials/supplies to be consumed within business operation |
Transaction Price Definition
The amount to which an entity expects to be entitled in exchange for transferring goods or services to a customer, excluding amounts collected on behalf of third parties |
Types of Discounts
Cash:offered at point of purchase/sales |
Settlement: goods bought on credit and discount is offered for early settlement |
Trade:associated with purchases/sales between retailers and suppliers |
Perpetual System
Immediate and up-to-date information about inventory on hand |
Weakness:Owing to theft, inventory account doesn't reflect actual cost |
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