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

question 50

Essay

Accounting terminology
Listed below are eight technical accounting terms introduced in this chapter:
1.Just-in-time
2.Average-cost method
3.LIFO method
4.Gross profit method
5.Inventory shrinkage
6.FIFO method
7.Retail method
8.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 cost flow assumption 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 cost flow assumption involving only one "cost layer."
_______ e.The inventory cost 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.