Accounting 2: Chapter 5 Review

The ____ is the inventory costing method that assumes the last items purchased are the first items sold.

• FIFO Method

• LIFO Method

• Specific Identification Method

• Weighted Average Cost Method

The _____ is the accounting guideline that states a business should report its financial position in amounts that are least likely to result in an overstatement of income or property values.

• Conservatism principle

• Consistency principle

• Market Value

• Periodic Inventory System

The inventory costing method that assumes the first items purchased were the first items sold is the ____.

• Specific Identification Method

• FIFO Method

• LIFO Method

• Weighted Average Cost Method

The ____ requires a constant, up-to-date record of merchandise on hand.

• periodic inventory system

• market value

• perpetual inventory system

• point-of-sale terminal

The requires a physical count of all merchandise on hand to determine the quantity of merchandise on hand.

• periodic inventory system

• perpetual inventory system

• point-of-sale terminal

• market value

The ___ reads bar codes and enters the information into a computer.

• market value

• point-of-sale terminal

• perpetual inventory system

• periodic inventory system

The ___ is used by businesses that have a low unit volume of merchandise with high unit prices.

• Specific Identification Method

• FIFO Method

• LIFO Method

• Weighted Average Cost Method

According to the ____, the items still on hand at the end of the fiscal period are assumed to be the last items purchased.

• Specific Identification Method

• FIFO Method

• LIFO Method

• Weighted Average Cost Method

The ___ assumes that the items still on hand at the end of the period are the first ones purchased.

• Specific Identification Method

• FIFO Method

• LIFO Method

• Weighted Average Cost Method

The ___ is the most accurate method to determine inventory costs.

• Specific Identification Method

• FIFO Method

• LIFO Method

• Weighted Average Cost Method