Matching
Match each definition to its term
Premises:
The required method of reporting inventory at market when market is lower than cost
One who receives and holds goods owned by another for purposes of selling the goods for the owner
The principle that aims to select the less optimistic estimate when two or more estimates are about equally likely
The accounting principle that says a company uses the same accounting methods period after period so that the financial statements of succeeding periods will be comparable
A procedure for estimating inventory where the past gross profit rate is used to estimate the cost of goods sold, which is then subtracted from the cost of goods available for sale to determine the estimated ending inventory
An owner of goods who ships them to another party who will then sell the goods for the owner
The method of assigning costs to inventory where the purchase cost of each item in inventory is identified and used to determine the cost of inventory
An estimate of days needed to convert the inventory available at the end of the period into receivables or cash
The number of times a company's average inventory is sold during an accounting period
A method for estimating inventory based on the ratio of the amount of goods for sale at cost to the amount of goods for sale at retail prices
Responses:
Consignor
Gross profit method
Consistency principle
Days' sales in inventory
Consignee
Specific identification method
Inventory turnover
Lower of cost or market
Retail inventory method
Conservatism principle
Correct Answer:
Premises:
Responses:
The required method of reporting inventory at market when market is lower than cost
One who receives and holds goods owned by another for purposes of selling the goods for the owner
The principle that aims to select the less optimistic estimate when two or more estimates are about equally likely
The accounting principle that says a company uses the same accounting methods period after period so that the financial statements of succeeding periods will be comparable
A procedure for estimating inventory where the past gross profit rate is used to estimate the cost of goods sold, which is then subtracted from the cost of goods available for sale to determine the estimated ending inventory
An owner of goods who ships them to another party who will then sell the goods for the owner
The method of assigning costs to inventory where the purchase cost of each item in inventory is identified and used to determine the cost of inventory
An estimate of days needed to convert the inventory available at the end of the period into receivables or cash
The number of times a company's average inventory is sold during an accounting period
A method for estimating inventory based on the ratio of the amount of goods for sale at cost to the amount of goods for sale at retail prices
Premises:
The required method of reporting inventory at market when market is lower than cost
One who receives and holds goods owned by another for purposes of selling the goods for the owner
The principle that aims to select the less optimistic estimate when two or more estimates are about equally likely
The accounting principle that says a company uses the same accounting methods period after period so that the financial statements of succeeding periods will be comparable
A procedure for estimating inventory where the past gross profit rate is used to estimate the cost of goods sold, which is then subtracted from the cost of goods available for sale to determine the estimated ending inventory
An owner of goods who ships them to another party who will then sell the goods for the owner
The method of assigning costs to inventory where the purchase cost of each item in inventory is identified and used to determine the cost of inventory
An estimate of days needed to convert the inventory available at the end of the period into receivables or cash
The number of times a company's average inventory is sold during an accounting period
A method for estimating inventory based on the ratio of the amount of goods for sale at cost to the amount of goods for sale at retail prices
Responses:
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