Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 16

Following are a number of the key terms and concepts introduced in the chapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–10). Note that not all key terms and concepts will be used.

a. Petty cash	k. Cash discount
b. Bank reconciliation	l. Credit terms
c. Deposit in transit	m. Notes receivable
d. Outstanding check	n. Collateral
e. Bank service charge	o. Cost-flow assumption
f. Not sufficient funds (NSF) check	p. Specific identification
g. Imprest account	q. First-in, first-out (FIFO)
h. Short-term marketable securities	r. Last-in, first-out (LIFO)
i. Commercial paper	s. Weighted average
j. Perpetual system	t. Periodic system

____________ The inventory cost-flow assumption based on an average of the cost of beginning inventory and the cost of purchases during the year (taking into account the quantity of items at each cost).