Inventory Cost Methods and Systems: LIFO, FIFO, and Periodic vs. Perpetual Tracking

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Finance - Personal Finance

jake12testoswi Created by 10 mon ago

Cards in this deck(59)

What is the method of allocating merchandise cost where each unit of inventory is specifically identified?

Which inventory cost method assumes sales are made from the most recently purchased goods?

Which method assumes the first goods purchased are the first goods sold?

What is the method of allocating merchandise cost based on the average cost of identical units?

Which method uses a business's normal gross profit percentage to estimate inventory costs?

Under which system are ending inventory and cost of goods sold determined at the end of the accounting period?

In which inventory system are accounts updated when merchandise is bought and sold?

In times of decreasing prices, which inventory cost method yields the highest net income?

Compute the Ending Inventory given: Beginning Inventory $700, Purchases $1,900, COGS $2,100.

Using LIFO, what is the ending inventory value if 90 units are sold from 40 @$115 and 50 @$110?

Under the Periodic Inventory System, when is the merchandise inventory and cost of goods sold determined?

Which cost is included in Cost of Goods Sold: wages, freight costs, internet expenses, or discounts?

In the Perpetual Inventory Method, what is the journal entry for a sale?

Which of these is not a measure of liquidity?

What term describes the speed with which a company can convert an asset to cash?

Inventory turnover is calculated by dividing which of the following by average inventory?

What is the basic formula of the income statement?

What is the primary purpose of a business?

What is cash received in advance for goods to be delivered at a later date called?

What term describes the ability of an asset to be quickly turned into cash?

What term describes an enterprise's ability to pay its debts?

What term describes an enterprise's ability to earn a reasonable profit on the owner's investment?

What ratio portrays a firm's short-term debt-paying ability?

Compute the 2nd year of depreciation for equipment purchased at $14,000 with a 7-year life using straight-line depreciation.

What is the term for a company holding the merchandise of another business to be sold?

What is the term for the owner of the merchandise that is held by another business?

What does GAAP stand for in accounting?

Complete the equation: Assets = _____ + Owner's Equity.

How are assets and expenses affected by debits and credits?

How are liabilities, equity, and income (revenues) affected by debits and credits?

What are sources of comparison for a firm's performance?

Why is budgeting important for a business?

What is the fair market value of a business enterprise?

What is the investment value of a company?

What is intrinsic value in business valuation?

What does 'going concern' mean in business valuation?

What is the assemblage of assets?

What is orderly disposition in business valuation?

What is liquidation value in business valuation?

What is the highest and best use of a property?

What does EBITDA stand for?

What does conservatism mean in inventory accounting?

What does the current ratio measure?

What does the quick ratio measure?

What is interstatement analysis?

What does return on owner measure?

What does return on assets measure?

What does inventory turnover show?

What does the Accounts Receivable Turnover Ratio indicate?

What does the Average Days to Pay indicate?

Goods held on consignment remain on the property of the _____?

In times of rising prices, which inventory cost method yields the lowest net income?

What is the relationship between 'from' in relation to 'which' and 'goods'?

Complete the equation: Cost of Goods Sold (COGS) = _____ - Ending Inventory.

What are variable costs?

What are fixed costs?

What are direct costs?

What are indirect costs?

The inventory account is an asset, so it goes _____ with debits.

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