BUS 3061 Capella University I

Assessment 5 Instructions: Inventory Management

  • PRINT
  • Answer questions regarding inventory management.

    Introduction

    Inventories are the least liquid form of any assets. In other words, they cannot be converted into cash easily. Inventories can be in the form of raw material, goods under process, or finished goods, but unless the finished goods are sold, cash is tied up into inventories. Similarly, if the raw material is not converted into final goods, then cash is blocked in raw material. Therefore, managing inventories and supply chains is very important for merchandising businesses.Have you ever taken advantage of a preinventory sale at your favorite retail store? Many stores offer bargain prices to reduce the merchandise on hand and to minimize the time and expense of taking the inventory. A smaller inventory also enhances the probability of taking an accurate inventory since the store has less merchandise to count.From your studies you know that companies use inventory amounts to determine the cost of goods sold. This major expense affects a merchandising company’s net income. Now, you examine the importance and role of inventories in preparing an accurate income statement and balance sheet. Your work will also stress the importance of having accurate inventory figures and the serious consequences of using inaccurate inventory figures. After more study, you should understand how taking inventory connects with the cost of goods sold figure on the store’s income statement, the retained earnings amount on the statement of retained earnings, and both the inventory figure and the retained earnings amount on the store’s balance sheet.

    Overview

    This assessment focuses on cost flow assumptions and inventory valuation. It requires an understanding of:

    • The value of proper merchandise inventory valuation for an organization’s financials.
    • The concept of the physical flow of goods.
    • The most commonly used inventory valuation methods.
    • How to use alternative historical cost methods for valuing merchandise inventory.
    • How to use the inventory turnover ratio as a tool for financial analysis.

    Preparation

    Note: Accuracy in accounting is paramount so take your time and double-check your work for errors or omissions.

    Instructions

    Answer questions correctly. When you are satisfied with your responses, save and submit your template in the courseroom.Step 1: Identify the costs to be included when calculating inventory cost.Step 2: Explain the three methods of costing and which one will yield the highest tax net income where price level is declining.Step 3: Describe alternative methods of calculating inventory cost.Step 4: Calculate the inventory turnover for a company.Step 5: Identify which methods to determine shrinkage or shortage in the physical inventory.

    Competencies Measured

    By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

    • Competency 1: Define accounting terminology and its application to accounting principles.
      • Identify the costs to be included when calculating inventory cost.
      • Explains the three methods of costing and which one will yield the highest tax net income where price level is declining.
      • Explain methods to determine shrinkage or shortage in the physical inventory.
    • Competency 2: Apply accounting cycle strategies to manage business financial events.
      • Describe alternative methods of calculating inventory cost.
      • Calculate the inventory turnover for a company.
    • Competency 4: Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards.
      • Convey clear meaning through appropriate word choice and usage.

Order this or a similar paper and get 20 % discount. Use coupon: GET20

 

Posted in Uncategorized

BUS 3061 Capella University I

Assessment 3 Instructions: Completing the Accounting Cycle


  • Answer questions related to the accounting cycle.

    Introduction

    A company may be profitable but cash poor, or generating millions of dollars in revenue but still not profitable. How the business transactions are reported in books is very important for regulators as well as investors. Accurate reporting of business transactions is essential for transparency.This course has introduced the accounting process of analyzing, classifying, and summarizing business transactions into accounts. Now, you begin to examine things in more detail, including:

    • The difference between the cash basis and accrual basis of accounting.
    • The classes and types of adjusting entries (prepared at the end of an accounting time frame).
    • Use of a worksheet to summarize the work completed during the accounting period.
    • The preparation of an organization’s closing entries.
    • How to report financial data using a classified balance sheet.

    Overview

    This assessment focuses on the need for adjusting entries, including:

    • The difference between the cash and accrual bases of accounting.
    • The concept of adjusting entries and how they are prepared.
    • How to classify adjusting entries.
    • The concept of asset depreciation and its effect on book values.

    Preparation

    Note: Accuracy in accounting is paramount so take your time and double-check your work for errors or omissions.

    Instructions

    Answer questions correctly. When you are satisfied with your responses, save and submit your template in the courseroom.Step 1: Compare and contrast how revenues and expenses are reported under the cash basis of accounting and the accrual basis of accounting.Step 2: Explain why adjusting entries are necessary at the end of an accounting period.Step 3: Identify examples of an adjusting journal entry for various types of transactions.Step 4: Explain accumulated depreciation.Step 5: Identify which account balances are extended to the Income Statement columns, the Statement of Retained Earnings columns, and the Balance Sheet columns.Step 6: Determine the current ratio between assets and liabilities for a given year.Step 7: List the accounting cycle steps in proper order.

    Competencies Measured

    By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

    • Competency 1: Define accounting terminology and its application to accounting principles.
      • Compare and contrast how revenues and expenses are reported under the cash basis of accounting and the accrual basis of accounting.
      • Explain accumulated depreciation.
      • List the accounting cycle steps in proper order.
    • Competency 2: Apply accounting cycle strategies to manage business financial events.
      • Explain why adjusting entries are necessary at the end of an accounting period.
      • Identify examples of an adjusting journal entry for various types of transactions.
      • Identify which account balances are extended to the Income Statement columns, the Statement of Retained Earnings columns, and the Balance Sheet columns.
      • Determine the current ratio between assets and liabilities for a given year.
    • Competency 4: Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards.
      • Convey clear meaning through appropriate word choice and usage.

Order this or a similar paper and get 20 % discount. Use coupon: GET20

 

Posted in Uncategorized

BUS 3061 Capella University I

  • Answer questions regarding inventory management.Introduction
    Inventories are the least liquid form of any assets. In other words, they cannot be converted into cash easily. Inventories can be in the form of raw material, goods under process, or finished goods, but unless the finished goods are sold, cash is tied up into inventories. Similarly, if the raw material is not converted into final goods, then cash is blocked in raw material. Therefore, managing inventories and supply chains is very important for merchandising businesses.Have you ever taken advantage of a preinventory sale at your favorite retail store? Many stores offer bargain prices to reduce the merchandise on hand and to minimize the time and expense of taking the inventory. A smaller inventory also enhances the probability of taking an accurate inventory since the store has less merchandise to count.From your studies you know that companies use inventory amounts to determine the cost of goods sold. This major expense affects a merchandising company’s net income. Now, you examine the importance and role of inventories in preparing an accurate income statement and balance sheet. Your work will also stress the importance of having accurate inventory figures and the serious consequences of using inaccurate inventory figures. After more study, you should understand how taking inventory connects with the cost of goods sold figure on the store’s income statement, the retained earnings amount on the statement of retained earnings, and both the inventory figure and the retained earnings amount on the store’s balance sheet.Overview
    This assessment focuses on cost flow assumptions and inventory valuation. It requires an understanding of:

    • The value of proper merchandise inventory valuation for an organization’s financials.
    • The concept of the physical flow of goods.
    • The most commonly used inventory valuation methods.
    • How to use alternative historical cost methods for valuing merchandise inventory.
    • How to use the inventory turnover ratio as a tool for financial analysis.
    • Preparation
    • Complete the Assessment 5 Template [DOCX].
    • Review all of the suggested resources and readings.
    • Note: Accuracy in accounting is paramount so take your time and double-check your work for errors or omissions.Instructions
      Answer questions correctly. When you are satisfied with your responses, save and submit your template in the courseroom.Step 1: Identify the costs to be included when calculating inventory cost.Step 2: Explain ?the three methods of costing and which one will yield the highest tax net income where price level is declining.Step 3: ?Describe alternative methods of calculating inventory cost.Step 4: Calculate the inventory turnover for a company.Step 5: Identify which methods to determine shrinkage or shortage in the physical inventory.?Competencies Measured
      ?By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
    • Competency 1: Define accounting terminology and its application to accounting principles.
      • Identify the costs to be included when calculating inventory cost.
      • Explains the three methods of costing and which one will yield the highest tax net income where price level is declining.
      • Explain methods to determine shrinkage or shortage in the physical inventory.?
    • Competency 2: Apply accounting cycle strategies to manage business financial events.
      • Describe alternative methods of calculating inventory cost.
      • Calculate the inventory turnover for a company.
    • Competency 4: Convey purpose, in an appropriate tone and style, incorporating supporting evidence and adhering to organizational, professional, and scholarly writing standards.
      • Convey clear meaning through appropriate word choice and usage.

Order this or a similar paper and get 20 % discount. Use coupon: GET20

 

Posted in Uncategorized