Advanced Accounting - Chapter 5

If ending inventory is overstated, net income will be overstated.

If the ending inventory is understated, retained earnings will be understated

Shipping terms where title to the goods passes to the buyer when the buyer receives the goods

The cost of goods calculated using the weighted-avg method will always be between LIFO and FIFO

A form used to show the type of merchandise, quantity received/sold, and balance on hand is _

Most businesses have a merchandise inventory turnover ratio close to 12, since they offer n/30

Goods that are given to a business to sell but for which title remains with the vendor are _

The consignor owns the goods on consignment and is responsible for selling the goods.

The total cost of ending inventory using the LIFO method is _.

The total cost of the ending inventory using the weighted-average method is

Cost of merchandise available for sale consists of the beginning merch inventory/net purchases

To prepare monthly interim financial statements, a business should take the inventory monthly.

FOB shipping point means that the title to the goods passes to the buyer when goods are delivrd

International financial reporting standards do not allow the use of the LIFO method

Using LIFO, the units from the beginning inventory will be the 1st included in cost of mer sold

The total cost of ending inventory using the FIFO method is _.

The number of times the average amount of merchandise inventory is sold during a specific time

Method that uses the price of merchandise purchased last to calculate merchandise sold first

Method that uses the lower of cost or market price to calculate the cost of ending inventory

FIFO, units from the beginning inventory will be the 1st units included in the cost of ending

Each year, a business uses the inventory costing method that results in the most fav net income

In times of rising prices, the LIFO method will result in the highest cost of merchandise sold

If an inventory is taken once a year, the business must be using the perpetual inventory method

A form used during a physical inventory to record info about each item of merchandise on hand

Business may fail if it doesn't have enough inventory on hand-it will not fail if it has excess

A periodic inventory maintains a continuous record of merchandise inventory increases/decreases