Match each phrase with the correct term placing the

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Accounting Using Excel for Success
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Chapter 7 / Exercise 01
Accounting Using Excel for Success
Reeve/Warren
Expert Verified
20. Match each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. 1. Inventory cut-off Legal title passes when goods are delivered to common carrier. 3 2. Cost flow assumption Legal title passes when goods arrive at customer location. 4 3. F.o.b. shipping point Not required to correspond to actual product flow. 2 4. F.o.b. destination Making sure goods in transit are properly accounted for. 1 5. Specific identification method Not feasible for many types of products. 5 AACSB: Reflective thinking Blooms: Comprehension Spiceland - Chapter 08 #20
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Accounting Using Excel for Success
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Chapter 7 / Exercise 01
Accounting Using Excel for Success
Reeve/Warren
Expert Verified
21. Match each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. 1. Specific identification Purchase discounts not taken are considered interest expense. 3 2. Gross profit ratio Purchase discounts not taken are included in inventory. 5 3. Net method 1 - (Cost of goods sold ÷ Net sales). 2 4. FIFO Products that are not yet complete. 1 5. Gross method Most recent purchases will be included in ending inventory. 4 AACSB: Reflective thinking Blooms: Comprehension Spiceland - Chapter 08 #21 22. Match each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. 1. Raw materials Most recent purchases will be included in cost of goods sold. 2 2. LIFO Could be used instead of an internally generated index in dollar-value LIFO computations. 4 3. Cost index The cost of components purchased from other manufacturers. 1 4. Consumer Price Index Used to convert ending inventory at year-end cost to base year cost. 3 5. Specific identification Method not feasible for most inventories. 5 AACSB: Reflective thinking Blooms: Comprehension Spiceland - Chapter 08 #22
23. Match each phrase with the correct term placing the letter designating the best term in the space provided by the phrase. 1. Average cost Goods are transferred to another company but title remains with transferor. 7 2. Dollar- value LIFO Legal title passes when goods arrive at customer location. 8 3. Perpetual inventory system Inventory is viewed as a quantity of value. 2 4. F.o.b. shipping point Adjusts inventory at the end of the period. 9 5. LIFO conformity rule Items sold are those acquired last. 6 6. LIFO Legal title passes when goods are delivered to common carrier. 4 7. Consignment Items sold come from a mixture of goods acquired during the period. 1 8. F.o.b. destination Items sold are those acquired first. 1 0 9. Periodic inventory system Continuously records changes in inventory. 3 10. FIFO If LIFO is used for income tax purposes, it must be used for financial reporting. 5 AACSB: Reflective thinking Blooms: Comprehension Spiceland - Chapter 08 #23

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