Accounting MidTerm 2024

Front

Which inventory method is used to continuously track inventory amounts?

Back

Perpetual Inventory System

Front

What is classified as a short-term asset because it can be converted into cash within a year, for example, raw materials, work-in-process, finished products?

Back

Manufacturing Inventory

Front

Which inventory method is used to update inventory balances periodically instead of constantly?

Back

Periodic Inventory System

Front

What are goods for resale which are classified as short-term assets because they can be converted to cash within a year?

Back

Merchandise Inventory

Front

What does "First In, First Out (FIFO)" mean in accounting?

Back

First items bought are to be the first items sold

Front

What is the definition of "Inventory" in accounting?

Back

Company's merchandise, materials, and products which have not been sold

Front

What does "Last In, First Out (LIFO)" mean in accounting?

Back

Last items purchased are the first to be sold

Front

What does "Cost of Goods Sold" represent in accounting?

Back

Revenue account which represents the sold inventory cost during a period

Front

What is the term for cash flow resulting from transactions with creditors or investors used to fund the activities of the business?

Back

Financing Activities

Front

What is the term for merchandise returned by a buyer to the seller/producer, often as a result of damaged or defective goods?

Back

Sales Return