If There Is a Novation, the Original Promisor Remains Liable

question 20

True/False

If there is a novation, the original promisor remains liable to the promisee if the latter fails to perform.

Grasp how inventory transactions affect financial statements under different inventory systems (perpetual vs. periodic).

Apply cost flow assumptions (FIFO, LIFO, Average Cost) in determining inventory value and cost of goods sold.

Understand the application of the lower of cost or net realizable value (LCNRV) rule on ending inventory.

Grasp the concept of the LIFO reserve and its effects on converting LIFO to FIFO.

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Definitions:

Onscreen Forms

Digital forms displayed on a screen, allowing users to enter and submit information electronically.

Entering Information

The process of inputting data into a system or document.

QuickBooks

Accounting software developed by Intuit, widely used by small and medium-sized businesses for finance management.

QuickBooks Transactions

Financial operations such as sales, purchases, and payments recorded and tracked within QuickBooks software.