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

question 29

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.Shrinkage losses
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.

---

Definitions:

Population Standard Deviation

The measure of variability that encompasses all the values in a given population.

Point Estimate

A single value (or point) that serves as the best guess or best estimate of a population parameter (like the mean or proportion).

Point Estimate

A single value or statistic used to estimate a population parameter.

Proportion

A statistical measure that reflects the fraction or percentage of the total number of items or cases that fall within a certain category or exhibit a particular attribute.