Match each term of inventory concept with the related statements.

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Chapter 7, Problem 11SE

To determine

Match each term of inventory concept with the related statements.

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Match the accounting terminology to the definitions. A(Click the icon to view the definitions.) More Info - X Term Definition 1. Cost of Goods Sold 2. Perpetual inventory system An inventory system that requires businesses to obtain a physical count of inventory to а. 3. Vendor determine quantities on hand. 4. Periodic inventory system Expenses, other than Cost of Goods Sold, that are incurred in the entity's major b. 5. Operating expenses ongoing operations. 6. Gross profit Excess of Net Sales Revenue over Cost of Goods Sold C. d. The cost of merchandise inventory that the business has sold to customers. The individual or business from whom a company purchases goods. е. f. An inventory system that keeps a running computerized record of merchandise inventory Print Done

The primary objective of inventory accounting is to a. Determine the peso amount at which inventory and cost of sales should be reported. b. Match appropriate costs against revenues in order that there may be a proper determination of net income. c. Allocated the cost of goods available for sale between inventory and cost of sales. d. Value inventory at the lower of cost or market.

Select all that apply Determine which of the following statements are correct regarding the difference between physical flow and the cost flow of inventory Check all that apply) A business may adopt any cost flow assumption when accounting for perishable sems Perishable-items Usually have an actual physical flow of FIFO Penshable items neve an actual physical flow of LIFO Cost flow in an assumption about which goods/items are sold Physical flow refers to the actual movement of goods