Question

1.(10 Points) Match each of the following terms a through j with the appropriate definition A. Specific identification method B. Days' sales in inventory C. Conservatism constraint D. Inventory turnover E. Retail inventory method F. Interim statements G. Net realizable value H. LIFO method I. Weighted average inventory methocd J. FIFO method The accounting constraint that aims to select the less optimistic estimate when two or more estimates are about equally likely. ー1 . 2. The expected sales price of an item minus the cost of making the sale. A method for estimating an ending inventory based on the ratio of the amount of goods for sale at cost to the amount of goods for sale at retail price. 3. 4. An estimate of days needed to convert the inventory at the end of the period into receivables or cash. 5. An inventory pricing method that assumes the unit prices of the beginning inventory and of each purchase are weighted by the number of units of each in inventory; the calculation occurs at the time of each sale. Financial statements prepared for periods of less than one year. 6. 7. An inventory valuation method that assumes costs for the most recent 8. An inventory valuation method where each item in inventory is identified 9. An inventory valuation method that assumes that inventory items are sold 10. The number of times a company's average inventory is sold duringa items purchased are sold first and charged to cost of goods sold. with a specific purchase and invoice. in the order acquired. period.

Answer 1

A	specific identification method	An Inventory Valuation Method where each item in Inventory is identified with a specific Purchase and Invoice
B	Days' Sales In Inventory	An Estimate of days needed to convert the inventory at the end of the period ito receivables or cash
C	Conservatism Constraint	The Accounting Constraint that aims to select the less Optimisitc estimate when two or more estimates are about equally likely.
D	Inventory Turnover	The number of times a company's average Inventory is sold during a Period
E	Retail Inventory Method	A method for estimating an ending inventory based on the ratio of the amount of goods for Sale at cost to the amount of goods for sale at retail Price
F	Interim statements	Financial statements prepared for periods of less than one year
G	Net Realizable Value	The expected sales price of an item minus the cost of making the sale.
H	LIFO Method	An inventory valuation method that assumes costs for the most recent items purchased are Sold First and Charged to Cost of goods sold
I	Weighted average inventory method	An inventory pricing method that assumes the unit prices of the beginning inventory and of each Purchase are weighted by the number of Units of each in Inventory; the calculation occurs at the time of each sale
J	FIFO Method	An inventory valuation method that assumes that inventory items are sold in the order acquired.