Listed below are several terms and phrases associated with inventory measurement. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it. (Select appropralte item from the list.) Descriptions Items a. Legal title passes when goods are delivered to common carrier. Perpetual inventory system b. Goods are transferred to another company but title remains with transferor. Periodic inventory system c. Purchases are recorded for the full cost of inventory. F.o.b. shipping point d. If LIFO is used for taxes, it must be used for financial reporting. Gross method e. Assumes items sold are those acquired first. Net method f. Assumes items sold are those acquired last. Cost index g. Purchase discounts are recorded for the full cost of inventory less any possible discount. F.o.b. destination h. Used to convert ending inventory at year-end cost to base year cost. FIFO i. Continuously records changes in inventory. LIFO Consignment Average cost j. Assumes items sold come from a mixture of goods acquired during the period. k. Legal title passes when goods arrive at location. RS conformity rule I. Adjusts inventory at the end of the period.

Listed below are several terms and phrases associated with inventory measurement. Pair each item from List A with the item from List B (by letter) that is most appropriately associated with it. (Select appropralte item from the list.) Descriptions Items a. Legal title passes when goods are delivered to common carrier. Perpetual inventory system b. Goods are transferred to another company but title remains with transferor. Periodic inventory system c. Purchases are recorded for the full cost of inventory. F.o.b. shipping point d. If LIFO is used for taxes, it must be used for financial reporting. Gross method e. Assumes items sold are those acquired first. Net method f. Assumes items sold are those acquired last. Cost index g. Purchase discounts are recorded for the full cost of inventory less any possible discount. F.o.b. destination h. Used to convert ending inventory at year-end cost to base year cost. FIFO i. Continuously records changes in inventory. LIFO Consignment Average cost j. Assumes items sold come from a mixture of goods acquired during the period. k. Legal title passes when goods arrive at location. RS conformity rule I. Adjusts inventory at the end of the period.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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