Three pharmacy giants, CVS Health, Walmart, and Walgreens Boots Alliance each use a different inventory costing method. CVS uses weighted-average cost, Walmart uses FIFO, and Walgreens uses LIFO. Here is a hypothetical example that highlights the potential differences in income statements and balance sheets that could arise simply because of the use of a different […]
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Are the articles of secondhand clothing offered for sale on ThredUp’s online store included in inventory on ThredUp’s balance sheet?
September 29, 2022 
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ThredUp Inc. is a startup online consignment and thrift store. Customers can buy like-new, carefully vetted brand-name clothing from ThredUp’s online store at discounts of up to 90% off of the original retail prices. Customers can also send in their unwanted clothing articles for ThredUp to resell. tThredUp’s professional buyers go through the articles of […]
Continue readingFree webinar: “Low Man on the Totem Pole – How I Became a White-Collar Criminal”
September 26, 2022 9 Comments
The Akron chapter of the Institute of Management Accountants (IMA) is sponsoring a webinar on white-collar crime – “Low Man on the Totem Pole – How I Became a White-Collar Criminal.” The webinar is on Wednesday, October 19, 2022, from 6:30 – 8 pm Eastern. Registration is at this link. I cannot emphasize enough what […]
Continue readingNew! Crossword puzzle to review the accounting cycle
September 25, 2022 4 Comments
Recently, I surveyed my students and found that most enjoy crossword puzzles. While not every activity will suit every student, I thought it would be a good idea to create some crossword puzzles for review activities. I am going to share those crossword puzzles here on my blog occasionally. The first crossword puzzle I am […]
Continue readingWhen will Ford recognize revenue in the reservation, order, and delivery process for its currently sold-out Ford F-150 Lightning electric truck?
September 19, 2022 2 Comments
The Ford Motor Company (NYSE: F) is selling an electric version of its F-150 pickup truck, the F-150 Lightning electric truck. Ford cannot keep up with demand; it has taken orders for its entire 2022 production capacity and has closed orders for the 2022 model. Ford has not yet begun taking reservations for the 2023 […]
Continue readingWhat internal controls might have prevented an Anderson Community School bookkeeper from stealing more than $1 million?
September 12, 2022 0 Comments
The Anderson Community School Corporation hired Carla Burke in 1998 and then made her the food service department bookkeeper in 2006. She worked as the bookkeeper until she retired in 2019. Burke was responsible for maintaining the records for the school lunch fund. She reconciled the bank account, maintained vendor invoices, prepared checks to send […]
Continue readingWhat closing entries would Wendy’s have made in 2021 based on its trial balance?
August 31, 2022 1 Comment
The Wendy’s Company (NASDAQ: WEN) is a fast-food chain and is a publicly held corporation. Wendy’s fiscal reporting periods consist of 52 or 53 weeks ending on the Sunday closest to December 31. Wendy’s 2021 fiscal year ended January 2, 2022, and its 2020 fiscal year ended January 3, 2021. To follow is a condensed […]
Continue readingWhat are the fiscal year ends of Walt Disney, Carnival Corporation, and Royal Caribbean Cruises, and others?
August 23, 2022 0 Comments
A calendar year runs from January 1 to December 31 each year. Companies are allowed to select a fiscal year that is different from the calendar year, which means not all companies’ financial statements cover the calendar year of January 1 through December 31. Here is a list of a variety of companies and their […]
Continue readingWhat information can be calculated from Wendy’s 2021 trial balance?
August 8, 2022 0 Comments
The Wendy’s Company (NASDAQ: WEN) is a fast-food chain and is a publicly held corporation. Wendy’s fiscal reporting periods consist of 52 or 53 weeks ending on the Sunday closest to December 31. Wendy’s 2021 fiscal year ended January 2, 2022, and its 2020 fiscal year ended January 3, 2020. To follow is a condensed […]
Continue readingWhat information is provided in Chipotle’s basic 2021 financial statements?
August 1, 2022 0 Comments
Chipotle Mexican Grill, Inc. (NYSE: CGM) is a publicly held corporation with more than $6 billion in assets. To follow are Chipotle’s four basic financial statements for its most recent year, the year ending December 31, 2021. Please note that all statements have been adapted and condensed for educational use and should not be used […]
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