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6.1 Discuss how to classify and determine inventory. 6.2 Apply inventory cost flow methods and discuss their financial effects. 6.3 Indicate the effects of inventory errors on the financial statements. 6.4 Explain the statement presentation and analysis of inventory. 
3.1 Explain the accrual basis of accounting and the reasons for adjusting entries. 3.2 Prepare adjusting entries for deferrals. 3.3 Prepare adjusting for accruals. 3.4 Describe the nature and purpose of an adjusted trial balance. 
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