Re: accounts anyone??
there wouldn’t be accounting if there weren’t management 
Re: accounts anyone??
I've heard Management accounting is easier than Financial accounting. I'm taking Financial right now and it's so confusnig :(....How is management acct differenT/
Re: accounts anyone??
^^ well the easiest explanation would be that financial accounting is for external users and management accounting is for internal users and for decision making purposes…i find management accounting rather confusing. 
Re: accounts anyone??
Sarah,
like BKP said, it really depends on the application which determines which branch you'll like - I love Management Accounting because it is more applicable to my functional area of Operations Management & Information Systems.
Although I wouldn't call Financial Accounting difficult, I just find it very routinely mundane and boring.
Re: accounts anyone??
Okay all you accounting students, I need serious help!!
As I've mentioned before, my final exam is tomorrow. I've studied a lot, and I'm still confused about: FIFO/LIFO (chapter 6) and Accounting for Recievables (chapter 9). Is there a way someon can explain to me in teh simplest terms how to calculate FIFO/LIFO and all of accounting for recieavbles.... thanks :)
Re: accounts anyone??
If you have specific questions... sure. But if you just want a general explanation, then your books or Google will offer a better alternative. Its hard to teach broad concepts without specific questions, via discussion forums.
Re: accounts anyone??
^ Okay the chapter I am reviewing right now is the GAAAAAAAAAAAAAAP one. Basically it boils down to this: Accounting assumptions are the foundation of accounting principles and accounting constraints are deviations from said principles. Also, accounting information has to be relevant, reliable, comparable and consistent. That is as basic as i can put it. For inventory, there's a simple formula I follow and everything else falls into place, that's what I'm trying to look for for the rest of the material.
But the other chapter, Accounting for recievables, I'm just absolutely lost. I know a recievable is a claim cllected in cash. There are three types of recievables: accounts, notes and other. After that, i'm confused, as to how to distinguish between the methods and bases used to value accounts recievable.... and that damn FIFO/LIFO thing I still don't undrestand. How do you calculate FIFO/LIFO?
Re: accounts anyone??
Other than the obvious fact that LIFO stands for Last In First Out, and FIFO stands for First In First Out, you have to remember that this is just a method of actual valuation, not how you dispose of your inventory. With very few exceptions, all warehouses work on FIFO basis.
Use of LIFO and FIFO becomes important when the price of your materials is moving up or down. The way to calculate under either method is to develop a spreadsheet where you record the price of each item entering the warehouse upon purchase and to re-calculate the issuance cost of the item.
Suppose you are a warehouse incharge and you use LIFO method. Lets say you bought 50 items at $10.
The value of your inventory is $500.
You issued 35 of those to your production manager. The cost is $350 (i.e. 35x10).
Now you bought another 40 items at $12.
Now what is the value of your inventory? $500-$350+$480=$630.
Your total items in the inventory are 50-35+40=55.
If you issue, 50 items now, the first 40 will be issued at $12 (the latter price) and the remaining 10 will be issued at $10. The total cost of items issued will thus be $580. Value of closing inventory is 5x$10=$50. This is because under LIFO method, you assume that the stock bought last is issued first. If you have to issue 2 more, they will be valued at 2x10=$20.
On the other hand, if you are under FIFO method, and you issue the same 50 items, the first 15 will be costed at $10 (the earlier price), and the remaining 35 will be valued at $12. Therefore, cost of inventory issued is $150+420=$570. Value of closing inventory is 5x$12=$60. If you have to issue 2 more, they will be valued at 2x12=$24.
The only way you can keep track of this is to make a table, and enter all transactions systematically and value all receipts and issues on their assigned values.
Re: accounts anyone??
I think Faisal has elaborated it all well....
i wud do it the same way....
so if u r still lost.....there's just one answer.....repeat ur classes....take one more year...n u will be fine!!!!......lolz....i hope thats not the case....
as far as the receivables are concerned...the three categories, accounts.....(the debtors), notes (bills/notes receivable), n others......like accrued incomes.....
u hav to knw the categorisation....after that its pretty m,uch adding up all of em....
good luck with exams ......
Re: accounts anyone??
Yeh this thread will come in handy in a coupla months :halo:
Re: accounts anyone??
hi was wondering if anyone can answe rmy example, been struggling for a while, on an example from the book
if 80 units were transfered to production using the fifo approach..
why would the book split it up to 50 units at one price and then 30 units at another price. why 50 and 30 just dont know how you would split like that
hi was wondering if anyone can answe rmy example, been struggling for a while, on an example from the book
if 80 units were transfered to production using the fifo approach..
why would the book split it up to 50 units at one price and then 30 units at another price. why 50 and 30 just dont know how you would split like that
Simply because they lots were purchased at different prices.
hi can i ask you a question simply beause you are the only peson that replied lol. what is wrong for a very large organization to use an accounting system which was designed for a small enterprise.
Re: accounts anyone??
Large organisations deal on national and international levels. They work from multi locations and often deals in multi products and multi prcoesses secnario. A system designed for a small enterprise will simply be unable to cope with that large amount of data to store and process and produce useful information.
Therefore, large organistation work on integrated ERP's such as MFGPro and SAP.
Large organisations deal on national and international levels. They work from multi locations and often deals in multi products and multi prcoesses secnario. A system designed for a small enterprise will simply be unable to cope with that large amount of data to store and process and produce useful information.
Therefore, large organistation work on integrated ERP's such as MFGPro and SAP.
right thanks, just really stuck on assignmnet question. is it cheeky to ask if you could help me on it.. cheerz
Re: accounts anyone??
What’s your next question?
75% done with my accounting degree (got through advanced etc) and I’m JUST starting to understand Faisal’s explanation. 
right thanks, just really stuck on assignmnet question. is it cheeky to ask if you could help me on it.. cheerz
Sure. Send a pm, please
Re: accounts anyone??
LIFO is not allowed by IFRS, I think. Its only US that allows it.
Re: accounts anyone??
thanks guys, its not letting me send a pm for some reason it wants me to have 25 posts first and i havent got that much.
Re: accounts anyone??
Alright! You can post here.