Welcome to StudyStack, where users create FlashCards and share them with others. Click on the large flashcard to flip it over. Then click the green, red, or yellow box to move the current card to that box. Below the flashcards are blue buttons for other activities that you can try to study the same information.
Test Android StudyStack App
Please help StudyStack get a grant! Vote here.
Reset Password Free Sign Up

Free flashcards for serious fun studying. Create your own or use sets shared by other students and teachers.

Remove Ads
incorrect cards (0)
correct cards (0)
remaining cards (0)
To flip the current card, click it or press the Spacebar key.  To move the current card to one of the three colored boxes, click on the box.  You may also press the UP ARROW key to move the card to the Correct box, the DOWN ARROW key to move the card to the Incorrect box, or the RIGHT ARROW key to move the card to the Remaining box.  You may also click on the card displayed in any of the three boxes to bring that card back to the center.

Pass complete!

Correct box contains:
Time elapsed:
restart all cards

Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Accounting ch. 6


Average cost/Weighted average Method for assigning inventory cost to sales; the cost of available-for-sale units is divided by the number of units available to determine per unit cost prior to each sale that is then multiplied by the units sold to yield the cost of that sale.
Conservatism constraint Principle that prescribes the less optimistic estimate when two estimates are about equally likely.
Consignee Receiver of goods owned by another who holds them for purposes of selling them for the owner.
Consignor Owner of goods who ships them to another party who will sell them for the owner.
Consistency concept Principle that prescribes use of the same accounting method(s) over time so that financial statements are comparable across periods.
Days' sales in inventory Estimate of number of days needed to convert inventory into receivables or cash; equals ending inventory divided by cost of goods sold and then multiplied by 365; also called days'stock on hand.
First-in, first-out (FIFO) Method to assign cost to inventory that assumes items are sold in the order acquired; earliest items purchased are the first sold.
Gross profit method Procedure to estimate inventory by using the past gross profit rate to estimate cost of goods sold, which is then subtracted from the cost of goods available for sale.
Inventory turnover Number of times a company's average inventory is sold during a period; computed by dividing cost of goods sold by average inventory; also called merchandise
Last-in, first-out (LIFO) Method for assigning cost to inventory that assumes costs for the most recent items purchased are sold first and charged to cost of goods sold.
Lower of cost or market (LCM) Required method to report inventory at market replacement cost when that market cost is lower than recorded cost.
Net realizable value Expected selling price (value) of an item minus the cost of making the sale.
Retail inventory method Method for estimating ending inventory based on the ratio of the amount of goods for sale at cost to the amount of goods for sale at retail.
Specific identification Method for assigning cost to inventory when the purchase cost of each item in inventory is identified and used to compute cost of inventory.
Interim statement (financial statements prepared for periods of less than one year), but they only annually take a physical count of inventory.
Created by: Esuvat Mollel Esuvat Mollel on 2014-03-13

bad sites Copyright ©2001-2015  StudyStack LLC   All rights reserved.