[Topsya]

Basically, my question is how thoroughly I should know these concepts? Should I just have a genera understanding or more than that?

Thanks,

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Anonymous]

Here's something I used to remember it. Not a Becker mnemonic, but it worked for me:

HaC NiC

Historical Cost

—> adjust for Appreciation

Current Cost

Nominal Dollars

—> adjust for Inflation

Constant Dollars

GAAP — you gotta HaND it to them —> Historical cost Nominal Dollars

And just think of monetary, you pay it with money (AP) or receive money (AR). Non-monetary is (generally) physical (PP&E, inventory, etc.).

[Author]

Replies