Advanced Accounting Chapter 5

Front

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

Back

FOB Destination

Front

The costing method that used the price of merchandise purchased last to calculate the cost of merchandise sold first is called

Back

last-in, first-out

Front

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

Back

inventory record

Front

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

Back

inventory turnover ratio

Front

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

Back

consignment

Front

The costing method that used the lower of cost or market price to calculate the cost of the ending merchandise inventory is called the

Back

lower of cost or market method

Front

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

Back

stock record

Front

If an inventory is taken once each year, is the business using the perpetual inventory method?

Back

false

Front

If the ending inventory is understated, what will happen to retained earnings?

Back

Retained earnings will be understated.

Front

A periodic inventory maintains a continuous record of merchandise inventory increases and decreases.

Back

False