Exam 4 Study Guide
Accounting 231 with Hsu at Kansas State University
About this deck
By: James Doull
Textbook:
Introduction to Accounting: An Integrated Approach
Created: 2010-11-18
Size: 8 flashcards
Views: 19
Textbook:
Introduction to Accounting: An Integrated ApproachCreated: 2010-11-18
Size: 8 flashcards
Views: 19
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Expenditure Process
Sequence of transactions or activities between a business and the suppliers form whom it acquires goods or services
Goals
To receive the highest quality goods/services at the lowest cost, when needed
To pay for goods/services in a timely manner
To develop good relationships with suppliers of goods and services
Four Major Activities Within the Expenditure Process
Determine the need for goods and services
-use a purchase requisition to provide vendor with a list of what items are needed and their quantities and shipping dates
Select suppliers and order goods and services
-use a purchase order to send to the vendor
Receiving and storing goods
-use a receiving report to inspect goods then goods arrive
Paying vendor for goods and services received
-vendor sends an invoice for the payment
-purchase discount
-->discount to encourage customer payment by a set date
Basic Flow of Information
Inventory - Purchasing - Vendor - Receiving - A/P - Cashier - Vendor
Periodic System
Inventory and COGS determined at the END of the period
Uses purchases and purchases discounts and purchases r/a and freight
Perpetual System
Uses inventory account to record events
Gross Price
Discounts are taken separately and purchases and returns of inventory are recorded at the undiscounted amount
Net Price
Discounts lost are recorded separately and purchases and returns are recorded at their discounted amount
About this deck
By: James Doull
Textbook: Introduction to Accounting: An Integrated Approach
Created: 2010-11-18
Size: 8 flashcards
Views: 19
Textbook:
Introduction to Accounting: An Integrated ApproachCreated: 2010-11-18
Size: 8 flashcards
Views: 19
About StudyBlue
STUDYBLUE makes things that make you better at school.
Things like online flashcards with photos and audio.
Things like personalized quizzes and friendly reminders about when (and what) to study next.
Think of it as a digital backpack™: access to all of your study materials online and on your phone.
STUDYBLUE exists to make studying efficient and effective for every student, for free. Join us.
“I have used this website for three exams, and I see a huge difference in my test results.”
Naj
Naj