Chapter 5 - Advanced Accounting
Terms in this set (18)
The person or business that receives goods on consignment.
Goods that are given to a business to sell but for which the title remains with the vendor.
The person or business that gives goods on consignment.
Days' sales in inventory
The time needed to sell an average amount of merchandise inventory.
The rate at which the price for goods and services decreases over time.
First-In, First-Out (FIFO) inventory costing method
Using the price of merchandise purchased first to calculate the cost of merchandise sold first.
Generally Accepted Accounting Principles (GAAP)
The standards and rules that accountants follow while recording and reporting financial activities.
Gross profit method of estimating inventory
Estimating inventory by using the previous year's percentage of gross profit on operations.
The rate at which the price for goods and services increases over time.
International financial reporting standards
A set of standards being adopted across the world.
A form used during a physical inventory to record information about each item of merchandise on hand.
Inventory turnover ratio
The number of times the average amount of merchandise inventory is sold during a specific period of time.
Last-In, First-Out (LIFO) inventory costing method
Using the price of merchandise purchased last to calculate the cost of merchandise sold first.
Lower of cost or market inventory costing method
Using the lower of cost of market price to calculate the cost of the ending merchandise inventory.
Retail method of estimating inventory
Estimating inventory by using a percentage based on both cost and retail prices.
A file of stock records for all merchandise on hand.
A form used to show the type of merchandise, quantity received, quantity sold, and balance on hand.
Weighted-average inventory costing method
Using the average cost of the beginning inventory plus merchandise purchased during a fiscal period to calculate the cost of merchandise sold.