Match the Term to the Appropriate Definition

question 142

Multiple Choice

Match the term to the appropriate definition.There are more definitions than terms.
-Cost of Goods Sold Equation

• A)Inventory costing method that identifies the cost of the specific item that was sold.
• B)Inventory costing method that assumes that the costs of the first goods purchased are the costs of the first goods sold.
• C)The difference between net sales and cost of goods sold.
• D)The inventory that starts the manufacturing process.
• E)Inventory items being transported.
• F)Consists of products acquired in a finished condition,ready for sale without further processing.
• G)A valuation rule that requires Inventory to be written down when its market value falls below its cost.
• H)The expense that follows directly after Net Sales on a multiple step income statement.
• I)Beginning Inventory + Purchases - Cost of Goods Sold
• J)Goods a company is holding on behalf of the goods' owner.
• K)Inventory costing method that assumes that the costs of the last goods purchased are the costs of the first goods sold.
• L)Requires that if LIFO is used on the income tax return,it also must be used in financial statement reporting.
• M)Beginning Inventory + Purchases - Ending Inventory
• N)Goods that are in the process of being manufactured.
• O)Inventory costing method that uses the weighted average unit cost of the goods available for sale for both cost of goods sold and ending inventory.
• P)Goods that are held for sale in the normal course of business or are used to produce other goods for sale.
• Q)How many times (on average)that inventory has been bought or sold.
• R)Inventory that was in process and now is completed and ready for sale.
• S)A measure of the average number of days from the time inventory is bought to the time it is sold.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Company Name

The official legal name under which a business operates and is registered under law.

QuickBooks

An accounting software package developed and marketed by Intuit, aimed at small and medium-sized businesses for managing payroll, inventory, sales, and other financial needs.

My Shortcuts

Typically refers to a customizable section in software or an application where users can save and quickly access frequently used functions or tasks.