Match the Terms with the Definitions

question 73

Multiple Choice

Match the terms with the definitions.
-A method of allocating merchandise cost in which each unit of inventory is recognized at its purchase price.

• A)average cost
• B)weighted-average method
• C)consignee
• D)consigned goods
• E)specific identification method
• F)retail method
• G)cost
• H)physical inventory
• I)periodic inventory system
• J)in transit
• K)inventory sheet
• L)natural business year
• M)lower-of-cost-or-market method

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Definitions:

Liability

A legal responsibility or obligation to compensate someone else for harm or damage that has been caused.

Janitor

A person responsible for cleaning, maintaining, and often securing buildings such as schools, office buildings, and residential complexes.

Exculpatory Clauses

Provisions in a contract that relieve one party from liability for wrongdoing, typically found in agreements for participation in potentially hazardous activities.

Intentional Misrepresentations

False statements or lies made knowingly, with the intention to deceive or mislead another party, which can serve as grounds for legal action if they result in harm.