Define the Term "Implicit Transaction" and Explain How These Transactions

question 109

Essay

Define the term "implicit transaction" and explain how these transactions are recorded in the financial records.In addition,list two of the four principal types of adjustments and give an example of each.

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Definitions:

Average Merchandise Inventory

The average value of a company’s inventory over a certain period, calculated to evaluate inventory levels and turnover.

Cost of Goods Sold

Costs directly incurred from producing goods a company sells, involving the expenses for materials and labor.

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a period, indicating the efficiency of inventory management.

Beginning Inventory

The value of goods available for sale at the start of an accounting period.