Inventory Costing

Question 1

requires the same accounting methods period after period for comparability

Answer 1

Consistency Principle

Question 2

ensures financial statements provide enough information for informed decisions.

Answer 2

Disclosure Principle

Question 3

states to strictly follow accounting rules only for significant items affecting finances

Answer 3

Materiality Concept

Question 4

Involves reporting the least favorable figures to prevent overvaluation

Answer 4

Conservatism

Question 5

total cost of inventory sold during a specific period

Answer 5

COGS (Cost Of Goods Sold)

Question 6

Value of unsold inventory remaining at the end of the period

Answer 6

Ending Merchandise Inventory

Question 7

Abbreviation for Generally Accepted Accounting Principles

Answer 7

GAAP

Question 8

The price at which each unit of inventory was purchased.

Answer 8

Unit Cost

Question 9

record of financial transactions in chronological order

Answer 9

Journal entries

Question 10

information important for decision making in financial matters

Answer 10

Relevance( Accounting)

Question 11

Data free from errors and can be trusted for accuracy

Answer 11

Reliability(Accounting)

Question 12

Resource owned or controlled by a company with future economic benefits.

Answer 12

Asset

Question 13

Records costs incurred in the normal course of business.

Answer 13

Expense Account

Question 14

Entities to whom a company owes money.

Answer 14

Creditors

Question 15

An entry recording an increase in assets or a decrease in liabilities.

Answer 15

debit

Question 16

An entry recording a decrease in assets or an increase in liabilities.

Answer 16

credit

Question 17

Multiplying the number of units by the unit cost to find total cost.

Answer 17

Unit Calculation

Question 18

Inventory of goods available for sale by a company.

Answer 18

Merchandise Inventory

Question 19

The movement of costs from inventory to expenses as goods are sold.

Answer 19

Cost Flow

Question 20

Determining the worth of assets owned by a company.

Answer 20

Asset Valuation

Question 21

Adjusting financial statements to reflect corrected costs.

Answer 21

Cost Restatement

Question 22

Reports summarizing a company’s financial position and performance.

Answer 22

Financial Statements

Question 23

Total revenue minus total expenses for a specific period.

Answer 23

Net Income

Question 24

Changing recorded costs to reflect accurate figures.

Answer 24

Cost Adjustment

Question 25

Methods and rules used in preparing financial statements.

Answer 25

Accounting Procedures

Question 26

Income generated from selling goods or services.

Answer 26

Sales Revenue

Question 27

Determining the cost of inventory sold and remaining unsold.

Answer 27

Inventory Calculation

Question 28

Guidelines for financial accounting and reporting.

Answer 28

GAAP Principles

Question 29

Different approaches to assume flow of inventory costs in a business

Answer 29

Inventory Costing Methods

Question 30

First in, first out method assumes oldest inventory sold first

Answer 30

FIFO

Question 31

Last in, first out method assumes newest inventory sold first

Answer 31

LIFO

Question 32

Method calculating average cost per unit of inventory

Answer 32

Weighted Average Method

Question 33

Method assigning actual cost to each unit of inventory

Answer 33

Specific Identification Method

Question 34

Goods available to sell

Answer 34

Inventory

Question 35

Date of selling 10 units

Answer 35

August 31st

Question 36

4 units left at the end of the period

Answer 36

Remaining Inventory

Question 37

Tracking inventory continuously

Answer 37

Perpetual Inventory Record

Question 38

Records additional units bought

Answer 38

Purchases Column

Question 39

Tracks costs when selling inventory

Answer 39

Cost of Goods Sold Column

Question 40

Shows current owned inventory

Answer 40

Inventory on Hand Column

Question 41

Initial stock at the start of the month

Answer 41

Beginning Inventory

Question 42

Multiplying unit cost by quantity

Answer 42

Total Cost

Question 43

Sum of costs for all owned inventory

Answer 43

Total Inventory Cost

Question 44

First units bought, sold first in FIFO

Answer 44

Oldest Units

Question 45

Increasing unit costs over time

Answer 45

Rising Costs

Question 46

Keeping different unit cost stocks distinct

Answer 46

Separate Baskets of Inventory

Question 47

Price paid for each unit of inventory

Answer 47

Cost Per Unit

Question 48

Difference between selling price and cost

Answer 48

Profit Margin

Question 49

Adjusting stock after purchases or sales

Answer 49

Update Inventory on Hand

Question 50

Total cost of all units in stock.

Answer 50

Inventory Cost

Question 51

Recording financial transactions in accounting.

Answer 51

Journal Entry

Question 52

Inventory valuation method based on average cost.

Answer 52

Weighted Average

Question 53

Physical currency or digital money.

Answer 53

Cash

Question 54

Number of units sold.

Answer 54

Units Sold

Question 55

Consistent cost per unit.

Answer 55

Uniform Cost

Question 56

Monetary exchanges recorded in accounts.

Answer 56

Financial Transactions

Question 57

Resources owned by a company.

Answer 57

Assets

Question 58

Costs incurred to generate revenue

Answer 58

Expenses

Question 59

Method of assigning a value to inventory.

Answer 59

Inventory Valuation

Question 60

Recording, analyzing, and reporting financial transactions.

Answer 60

Accounting

Question 61

Sum of all units purchased.

Answer 61

Purchase Total

Question 62

Remaining stock available for sale.

Answer 62

Inventory On Hand