Listed Below Are Ten Terms Followed by a List of Phrases

question 118

Multiple Choice

Listed below are ten terms followed by a list of phrases that describe or characterize five of the terms.Match each phrase with the best term placing the letter designating the term in the space provided.
-_____ Cost of inventory sold during the period.

• A)Ending inventory
• B)Freight-in
• C)Cost of goods sold
• D)LIFO conformity rule
• E)LIFO
• F)Freight-out
• G)LIFO reserve
• H)Specific identification
• I)FIFO
• J)Average cost

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Definitions:

Compound Interest

Interest that is computed on both the initial amount of the deposit or loan and on the interest that has been added to that principal over past periods.

Desired Rate of Return

The minimum percentage return an investor expects to achieve by investing in a particular asset.

Present Value

The value today of a sum of money or cash flows expected in the future, discounted at a particular rate of return.

Compound Interest

Interest calculated not only on the original principal amount but also on the accrued interest from past periods on a deposit or loan.