Accounting 2 - Ch. 5 Review

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

• stock ledger

• inventory record

• consignment

• days' sales in inventory

The person or business that received goods on consignment.

• consignee

• consignor

• stock recorder

• accountant

The person or business that gives goods on consignment.

• consignee

• consignor

• stock recorder

• accountant

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

• stock ledger

• inventory ledger

• inventory record

• stock record

A file of stock records for all merchandise on hand.

• stock ledger

• stock record

• inventory record

• inventory ledger

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

• inventory record

• inventory ledger

• stock record

• stock ledger

The standards and rules that accountants follow while recording and reporting financial activities.

• Generally Accepted Accounting Principles (GAAP)

• Gross Profit Method

• Retail Method

• Inventory Method

Using the price of merchandise purchased first to calculate the cost of merchandise sold first.

• FIFO

• LIFO

• Weighted Cost

• Retail

Using the price of the merchandise purchased last to calculate the cost of merchandise sold first.

• FIFO

• LIFO

• Weighted Average

• Retail

Using the average cost of the beginning inventory plus merchandise purchased during a fiscal period to calculate the cost of merchandise sold.

• LIFO

• FIFO

• Weighted Average

• Gross Profit