Examlex
Nick looked up a phone number in the telephone directory, and instead of writing it down, he kept repeating it to himself over and over until he could punch the numbers and make the call. Which of the following describes what Nick was doing?
Perpetual Inventory
A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.
Retail Inventory Method
An accounting method used to estimate the ending inventory balance of a retail store by applying a cost-to-retail price ratio to the sales for the period.
Balance Sheet
A financial statement that provides a snapshot of a company's financial position, including assets, liabilities, and shareholders' equity at a specific point in time.
Gross Profit Method
An inventory estimation technique that uses the historical gross profit margin to estimate the cost of goods sold and ending inventory.
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