Accounting Terminology Listed Below Are Nine Technical Accounting Terms Introduced in This

question 120

Essay

Accounting terminology
Listed below are nine technical accounting terms introduced in this chapter:
Just-in-time
Average-cost method
LIFO method
Gross profit method
Inventory shrinkage
FIFO method
Retail method
Inventory turnover
Each of the following statements may (or may not) describe one of these technical terms. In the space provided below each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.
_____ a. The flow assumptions in which the oldest units purchased are assumed to have remained in inventory.
_____ b. A method of estimating the cost of goods sold and ending inventory based upon cost relationships from prior periods.
_____ c. The practice of valuing inventory in the balance sheet at expected sales prices, rather than at cost.
_____ d. An inventory flow assumption involving only one "cost layer."
_____ e. The inventory flow assumption likely to result in the highest reported amount of gross profit during a period of rising prices.
_____ f. A technique for minimizing a company's investment in inventory, particularly inventories of raw materials and finished goods.
_____ g. A measure of a company's ability to sell its inventory quickly.

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Definitions:

Symphony Orchestra

A large ensemble of musicians, typically including strings, woodwinds, brass, and percussion, performing classical and other types of music.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be consumed by everyone and one person's consumption does not diminish another's.

Efficiency Problem

An issue or circumstance that prevents an economic system or process from optimizing resource use to achieve the greatest output or utility.

Exclude

To eliminate or leave out from consideration or a group.