Description:
Inventory usually represents a substantial portion of a manufacturing or merchandising company's total assets: on average, it is more than 30% of total current assets for a U.S. company. Inventory management has significant influence on a company's cash flow and continued viability, and as an asset on the balance sheet, inventory can have a direct impact on reporting the solvency of the company. Thus, determining ideal inventory levels is a balancing act and a key to a healthy and growing business.
This course is designed to address the main accounting principles and concepts applicable to inventory. It shares insights and techniques focused on improving inventory optimization processes, forecasting accuracy, and replenishment strategies. It also discusses common warning signs of inventory fraud, investigation techniques, and some control activities to mitigate risks. This course also identifies uses of technology to improve inventory management systems. Finally, risk areas, processes, and tips for planning a smooth inventory count are included to help a company prepare for year-end audits.
This course can be used by accounting professionals as a roadmap to what every accountant should know about inventory accounting, reporting, safeguarding, and optimization strategies.

Delivery Method: Online Interactive Self Study

Level: Overview

Prerequisites: None

Advanced Preparation: None

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Author: Delta Publishing

Category: Accounting and Auditing

Field of Study: Accounting

Passing Score: 70%

Publication Date: 09/17/2019

Technical Details:

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Objectives:
Chapter 1: Accounting and Reporting Inventory
1. Identify the characteristics of merchandising, manufacturing, and service companies
2. Recognize the components of inventory costs
3. Recognize how to account for inventories including consigned goods, and lower of cost or market
4. Distinguish between perpetual and periodic inventory systems
5. Indicate several inventory costing methods including FIFO, LIFO, and weighted average approach
6. Identify proper disclosure requirements for inventory and change in the inventory costing method
7. Recognize key differences between IFRS and GAAP in accounting for inventory

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NASBA: Yes

QAS: Yes

CPA: Suitable for all CPAs

IRS: No IRS credit for Enrolled Agents.