Accounting Error Inventory
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Subjects Principles of Accounting The Accounting Equation Financial Reporting Objectives Generally Accepted Accounting Principles Internal Control Introduction to Accounting Understanding Financial Statements Analyzing and Recording Transactions Double‐Entry inventory error correction Bookkeeping Journal Entries The General Ledger The Recording Process Illustrated The Trial Balance accounting error types Analyzing Transactions T Accounts Adjustments and Financial Statements Accrued Revenues Accrued Expenses Unearned Revenues Prepaid Expenses Depreciation Adjusting Entries accounting error correction examples The Adjustment Process Illustrated Financial Statements Completion of the Accounting Cycle Closing Entries The Post‐Closing Trial Balance The Accounting Cycle Reversing Entries Correcting Entries The Work Sheet Accounting for a Merchandising
Groupon Accounting Error
Company Sales Discounts Net Sales Inventory Systems Recording Purchases Returns and Allowances Accounting Inventory Purchases Discounts Recording Sales Sales Returns and Allowances Net Purchases and Goods Purchased The Cost of Goods Available and Sold Gross Profit Financial Statements with Inventory Adjusting the Inventory Account Inventory Adjustments Closing Entries Updates Inventory Subsidiary Ledgers and Special Journals Special Journals Subsidiary Ledgers Cash Bank Reconciliation accounting error correction entries Credit Card Sales Cash Controls The Petty Cash Fund Receivables Evaluating Accounts Receivable Estimating Bad Debts—Allowance Method Factoring Receivables Notes Receivable Recording Notes Receivable Transactions Discounting Notes Receivable Receivables Defined Inventory Inventory Systems: Perpetual or Periodic Inventory Subsidiary Ledger Accounts Cost Flow Methods Inventory Errors and Financial Statements Estimating Inventories Determining Inventory Levels The Cost of Inventory The Valuation of Merchandise Operating Assets Depreciation of Operating Assets Repairs and Improvements Disposition of Depreciable Assets Natural Resources Intangible Assets Operating Assets Defined The Cost of Property, Plant, Equipment Inventory Errors and Financial Statements Income statement effects. An incorrect inventory balance causes an error in the calculation of cost of goods sold and, therefore, an error in the calculation of gross profit and net income. Left unchanged, the error has the opposite effect on cost of goods sold, gross profit, and net income in the following accounting period because the first accounting period's ending inventory is the second period's beginning inventory. The total cost of goods sold, gross profit, and net income for the two periods will be correct, but the allocation of these amounts between periods w
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Topics Management Accounting Topics Finance Topics Finance Topics Podcast Accounting Best Practices Podcast Index Podcast Feedback Q&A Q&A Q&A Index Dictionary Dictionary About About Contact Home Top CPE Accounting https://www.cliffsnotes.com/study-guides/accounting/accounting-principles-i/inventory/inventory-errors-and-financial-statements CPE Enrolled Agents CPE Books Accounting & Finance Books Management & Operations Books e-Books Bookkeeper Library CFO Library Controller Library Financial Analysis Library Textbooks Textbooks Accounting Topics Financial Accounting Topics Management Accounting Topics Finance Topics Finance Topics Podcast Accounting Best Practices Podcast Index Podcast Feedback Q&A Q&A Q&A Index Dictionary Dictionary About About Contact Home
Accounting Bestsellers http://www.accountingtools.com/questions-and-answers/how-many-accounting-periods-does-an-inventory-error-affect.html Accountants' GuidebookAccounting Controls Guidebook Accounting for Inventory Accounting for ManagersAccounting Procedures Guidebook Bookkeeping Guidebook Budgeting Business Ratios GuidebookCFO Guidebook Closing the Books Controller GuidebookCorporate Cash ManagementCost Accounting Fundamentals Cost Management GuidebookCredit & CollectionsEnterprise Risk ManagementFinancial Analysis Fixed Asset Accounting Fraud ExaminationGAAP Guidebook IFRS Guidebook Lean Accounting Guidebook MBA GuidebookMergers & AcquisitionsPayables ManagementPayroll ManagementPublic Company AccountingSmall Audit Practice SetTreasurer's Guidebook This form does not yet contain any fields. WednesdayFeb022011 How many accounting periods does an inventory erroraffect? An inventory error affects two consecutive accounting periods, assuming that the error occurs in the first period and is corrected in the second period. If the error is never found, then there is an impact in only one accounting period. The reason is that an error in the first period changes the ending inventory number, which is used to calculate the cost of goods sold in that period. Then, the incorrect ending inventory number from the first month becomes the beginning balance of inventory for the second month; once the inventory error is corrected in theChronicle Investigates Obituaries Staff Blogs Reader Blogs Columnists Opinions & Editorials La Voz (Español) Neighborhoods Bay Area Bellaire Cy-Fair Fort Bend Heights Katy Kingwood Memorial Pearland Spring http://smallbusiness.chron.com/fix-inventory-errors-financial-statements-44155.html The Woodlands Houston & Texas Houston Texas Weather SciGuy's Weather Blog Houston Weather Severe https://www.youtube.com/watch?v=w-Dok8h-MkM Weather News Hurricane Guide Politics & Policy Texas Politics Houston Politics Endorsements Opinions & Editorials Editorials Letters to the Editor Outlook Nick Anderson Cartoons Bill King Columns Recommendations 2013 US & World In US & World US News World News The Americas Politics Space Strange & Weird News Videos JFK: After 50 Years Sports accounting error In Sports Texans Rockets Astros Dynamo High school Colleges UH Rice UT A&M Outdoors Videos More Sports Buy Tickets Outdoors Hunting & Fishing More Sports Golf Business In Business Energy Technology Real Estate Houston Business News Business Insider Markets Press Releases Small Business Mgmt Chron 100 Top Workplaces Legal News Sponsored Content Entertainment In Entertainment Preview Restaurants & Bars Restaurant Search Music Movies Movie Times Arts & Theater Horoscopes accounting error correction Comics & Games Things To Do Contests Preview Alison Cook Restaurant Reviews Whine & Dine Top 100 Restaurants Music Rolling Stone Heavy.com Lifestyle In Lifestyle Holidays Health Zone Style Mom Houston Houston Belief Food & Cooking Society Travel Pets Houston Gives Discover Houston Weddings & Celebrations Sponsored Content Health Zone M.D. Finder The Doctors Live Healthy Health Videos Better Sleep Style Luxury Auto Beauty Dining Fashion Home & Design Home Elegance Lust List Travel Window Shopping Food & Cooking Alison Cook Restaurant Reviews Whine & Dine Top 100 Restaurants Travel Flight Tracker Texas Road Trips Ski & Snow Discover Houston About Houston Arts & Entertainment Employment & Economy Food & Drink Health Care Real Estate Retirement Sports & Outdoors Suburbs Weekends Jobs In Jobs Advanced search Browse job categories Salary Wizard Career Rescue Careers in Engineering Salute to Nurses Work & Career Advice Job Fairs & Career Expo Post a Job Cars In Cars Cars & Auto News Heidi's Cars Blog Houston Auto Show New Car Search Used Car Search Certified Car Search Houston Auto Dealers Real Estate In Real Estate New Homes Second Homes Rentals Home Price Survey Research Mortgages Commercial Real Estate Farms & Ranches Senior Living Chron Homes App S
Accounting (Beginning & Ending Inventory Errors Affect On Net Income) Allen Mursau SubscribeSubscribedUnsubscribe11,90611K Loading... Loading... Working... Add to Want to watch this again later? Sign in to add this video to a playlist. Sign in Share More Report Need to report the video? Sign in to report inappropriate content. Sign in Transcript Statistics 16,032 views 21 Like this video? Sign in to make your opinion count. Sign in 22 8 Don't like this video? Sign in to make your opinion count. Sign in 9 Loading... Loading... Transcript The interactive transcript could not be loaded. Loading... Loading... Rating is available when the video has been rented. This feature is not available right now. Please try again later. Published on Nov 2, 2012Accounting for inventory errors in beginning and ending inventory, example demonstrates how to deterime the effect of inventory errors on net income (using the periodic inventory method), when accounting for inventory errors first starting with the inventory account on the balance sheet determine whether the error is in the beginning or ending inventory and whether the error under values or over values inventory, next determine the amount of inventory which is charged of against the sales revenue for the period based on the amount of inventory used (beginning inventory plus purchases for the period minus ending inventory), this is the amount of cost of goods sold for the period, netting the cost of goods sold against revenues equals the net income, (1) if inventory is under valued then net income will be over valued and (2) if inventory is over valued then net income will be under valued, inventory errors in the ending inventory balance of the previous year are carried over to the beginning inventory balance of the current year, in the case where inventory is under valued in the previous year the net income for the previous year will be under valued as well, again with inventory under valued (beginning inventory balance) in the current year the net income will be over v