Matching
Match each definition to its term
Premises:
The number of times a company's inventory is sold during a period
A method for estimating an ending inventory based on the ratio of the amount of goods for sale at cost to the amount of goods for sale at retail price
The expected sales price of an item minus the cost of making the sale
An inventory pricing method that assumes the unit prices of the beginning inventory and of each purchase are weighted by the number of units of each in inventory; the calculation occurs at the time of each sale
The accounting principle that aims to select the less optimistic estimate when two or more estimates are about equally likely
Financial statements prepared for periods of less than one year
An inventory valuation method that assumes costs for the most recent items purchased are sold first and charged to cost of goods sold
An inventory valuation method that assumes that inventory items are sold in the order acquired
An inventory valuation method where the purchase cost of each item in ending inventory is identified and used to determine the cost assigned to inventory
An estimate of days needed to convert the inventory at the end of the period into receivables or cash
Responses:
Conservatism principle
Net realizable value
Retail inventory method
Days' sales in inventory
Weighted average inventory method
Interim statements
LIFO method
Specific identification method
FIFO method
Inventory turnover
Correct Answer:
Premises:
Responses:
The number of times a company's inventory is sold during a period
A method for estimating an ending inventory based on the ratio of the amount of goods for sale at cost to the amount of goods for sale at retail price
The expected sales price of an item minus the cost of making the sale
An inventory pricing method that assumes the unit prices of the beginning inventory and of each purchase are weighted by the number of units of each in inventory; the calculation occurs at the time of each sale
The accounting principle that aims to select the less optimistic estimate when two or more estimates are about equally likely
Financial statements prepared for periods of less than one year
An inventory valuation method that assumes costs for the most recent items purchased are sold first and charged to cost of goods sold
An inventory valuation method that assumes that inventory items are sold in the order acquired
An inventory valuation method where the purchase cost of each item in ending inventory is identified and used to determine the cost assigned to inventory
An estimate of days needed to convert the inventory at the end of the period into receivables or cash
Premises:
The number of times a company's inventory is sold during a period
A method for estimating an ending inventory based on the ratio of the amount of goods for sale at cost to the amount of goods for sale at retail price
The expected sales price of an item minus the cost of making the sale
An inventory pricing method that assumes the unit prices of the beginning inventory and of each purchase are weighted by the number of units of each in inventory; the calculation occurs at the time of each sale
The accounting principle that aims to select the less optimistic estimate when two or more estimates are about equally likely
Financial statements prepared for periods of less than one year
An inventory valuation method that assumes costs for the most recent items purchased are sold first and charged to cost of goods sold
An inventory valuation method that assumes that inventory items are sold in the order acquired
An inventory valuation method where the purchase cost of each item in ending inventory is identified and used to determine the cost assigned to inventory
An estimate of days needed to convert the inventory at the end of the period into receivables or cash
Responses:
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