| A | B |
|---|
| point-of-sale terminal | A cash register that inputs data into a computer |
| market value | The current price being charged for an item of merchandise |
| perpetual inventory | usually used by businesses that input all purchases and sales into a computer system when the transaction occurs. |
| FIFO method | an inventory method that assumes that the items purchased at the beginning of the period are the first items sold |
| specific identification | An inventory method in which the actual cost of each item must be determined |
| periodic inventory | used when items on hand are counted to update the inventory records |
| weighted average cost | an inventory method in which the cost of items on hand is determined by averaging the costs |
| LIFO method | an inventory method that assumes that the items purchased at the end of the period are the first items sold. |
| consistency principle | using the same inventory method for each accounting period |
| market rule | requires that the cost of the ending inventory is lower then the market value |
| conservatism principle | using the accounting method that will least likely result in overstatement of income |
