1. Consider the following accounting terms and definitions:
Match the accounting terms with the corresponding definitions.
Last-in, First-out (LIFO)
Weighted – average
First-in, First-out (FIFO)
A. Treats the oldest inventory purchase as the first units sold.
B. Requires that a company report enough information for outsiders to make knowledgeable decisions.
C. Identifies exactly which inventory item was sold. Usually used for higher cost inventory.
D. Calculate a weighted average cost based on the cost of goods available for sale and the number of units available.
E. Principle whose foundation is to exercise caution in reporting financial statement items.
F. Treats the most recent/ newest purchase as the first units sold.
G. Business should use the same accounting methods from period to period.
H. Principle that states significant items must conform to GAAP.
2. Davidson Hardware used the FIFO inventory costing method in 2015. Davidson plans to continue using the FIFO method in future years. Which accounting principle is most relevant to Davidson’s decision?
A. Accounting Conservation
B. Consistency Principle
C. Materiality Concept
D. Disclosure Principle
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more