Match the Terms with the Definitions

question 18

Multiple Choice

Match the terms with the definitions.
-A method of allocating merchandise cost which assumes that the sales in the period were made from the most recently purchased goods. Therefore, the earliest goods purchased remain in inventory.

• 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

---

Definitions:

Each Quarter

A period of three months used in financial and business reporting.

Per Month

A term indicating the occurrence or measurement of something on a monthly basis.

Compounded Quarterly

Interest on an investment or loan calculated four times a year, adding each interest payment to the principal for future calculations.

Compounded Monthly

A system for calculating interest on a monthly cycle, including the original deposit or loan amount plus the accumulated interest from earlier cycles.