Match the Terms with the Definitions

question 16

Multiple Choice

Match the terms with the definitions.
-The principle that states that a business should use the same accounting methods from period to period. This improves the comparability of the financial statements over time.

• A)average cost
• B)conservatism
• C)perpetual inventory system
• D)market value
• E)consignor
• F)consistency
• G)cost
• H)first-in, first-out method
• I)gross profit method
• J)last-in, first-out method
• K)inventory sheet

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Definitions:

Fiduciary Duty

A legal obligation of one party to act solely in the interest of another party, such as a trustee to a beneficiary.

Self-interest

The focus on one's own benefit or advantage, especially when pursued without regard for others.

Partnership Interest

The share or portion of the rights, profits, and losses in a partnership business allocated to a particular partner.

Management of Business

Involves overseeing the administration and strategic planning of a company or organization to ensure goals and objectives are achieved.