We’ll begin this course with a look at inventory and learn how to link inventory valuation to gross profit. We’ll also explore the four principal inventory valuation methods and assess the pros and cons of each inventory valuation method. Next, we’ll learn how to measure the cost of long-lived assets and distinguish between expenses and capitalized items. We’ll learn how to compute depreciation under various depreciation methods and explain the effect of depreciation on cash flow. We’ll also learn how to compute gains and losses on disposal of fixed assets as well as account for the impairment of tangible assets.

Next, we’ll look at the concept of deferred taxes and learn how to distinguish between a deferred tax asset and liability. This course also teaches you on how to compute the value of a deferred tax liability and explains when and why a deferred tax liability would be considered an equity item.

This course is part 3 of the New York Institute of Finance’s Financial Accounting Professional Certificate.