Match the Following Terms with Their Definitions

question 69

Multiple Choice

Match the following terms with their definitions.
-Average inventory

• A)Average cost for that period for inventory
• B)Inventory continually updated
• C)(Beginning inventory and ending inventory)÷ 2
• D)New inventory sold first
• E)Cost percentage
• F)Inventory not updated continually
• G)Each cost is known
• H)Old inventory sold first
• I)A ratio
• J)A ratio used to calculate cost of ending inventory
• K)Operating expenses not directly associated with a specific department

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Definitions:

Reinvested Interest

Reinvested interest is the compounding of interest by adding the payments back to the principal amount instead of paying it out, thereby increasing the total interest earned over time.

Simple Interest

Interest calculated only on the principal amount of a loan or investment, not on any previously earned interest.

Account Balance

The total amount of money present in an account at a given point in time, considering all credits and debits.

Funds

Capital set aside for specific purposes or investments.