COGS equation: calculating cost of goods sold

Let’s review the traditional cogs equation. It’s very easy to understand. I call this the old-fashioned way to compute cogs since it's not the formula used by modern accounting software such as QuickBooks, which relies on the perpetual inventory system. Even though it seems old fashioned, it's a good formula to memorize. The cogs equation's … Continue reading COGS equation: calculating cost of goods sold

What does Other Comprehensive Income do?

It makes sense to think of the OCI statement as sort of like a reconciliation statement. It accounts for the difference between the FMV reporting and the amortized cost reporting on the two financial statements. But off the top of my head, there is something inconsistent about this. The two most important financial statements used by large firms and investors are required to be reported on different bases.