Match the Term and the Definition

question 90

Short Answer

Match the term and the definition.Not all definitions will be used.
_____ weighted average cost.
_____ work in process inventory.
_____ days to sell.
_____ specific identification.
_____ goods available for sale.
_____ inventory.
_____ inventory turnover ratio.
_____ cost of goods sold equation.
A.The sum of beginning inventory and purchases by the company.
B.A company's policy of requiring identification by customers who pay by cheque.
C.The book value of all the partially produced goods held by a manufacturer.
D.Beginning inventory plus purchases minus ending inventory.
E.Tangible property held for future sale or used to produce other goods or services for sale.
F.The concept that relatively small amounts should be reported in the most cost effective way if they are too small to influence decisions.
G.The current market value of investment assets minus their original cost.
H.The average cost a company paid for inventory taking into account the number of units bought at each unit cost.
I.The average length of time it takes a company to sell an item in inventory.
J.An inventory costing method where the firm adds up all the different prices it paid for inventory and divides by the number of prices.
K.The average number of times a company sells its inventory over the year.
L.The amount of money that firms set aside today to buy inventory in the future.
M.An inventory costing method where the firm keeps track of the cost and sale of each individual good.

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Definitions:

Indorses

To sign the back of a financial document, transferring interest or rights to another party.

Holder in Due Course

A party that has acquired a negotiable instrument in good faith and without notice of any defect in title.

Maker

The individual or entity that creates or produces an item or is the original writer of a check or promissory note.

Without Recourse

A term indicating that the holder of a financial instrument cannot demand payment from the issuer in the case of default.