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:

Caregiver

An individual who provides care for another person, such as a child, elderly, or someone with a disability.

IADLs

Stands for Instrumental Activities of Daily Living, which are activities related to independent living, such as managing finances, transportation, and housekeeping.

ADL

Refers to Activities of Daily Living, which are routine activities people do every day without assistance, such as eating, bathing, dressing, toileting.

Self-sufficiency

The ability of an individual or community to meet their needs without external assistance, including producing food, goods, and services required for living.