| A | B |
|---|
| Stock Record | A form used to show the kind of merchandise, quantity received, quantity sold, and balance on hand. |
| Stock Ledger | A file of stock records for all merchandise on hand |
| Purchase Order | A complete form authorizing a seller to deliver goods with payment to be made later |
| Inventory Record | A form used during a periodic inventory to record information about each item of merchandise on hand |
| First-in, first out inventory costing method | Using the price of merchandise purchased first to calculate the cost of merchandise sold first. |
| Last-in, first out inventory costing method | Using the price of merchandise purchased last to calculate the cost of merchandise sold first |
| Weighted-average inventory costing method | Using the average cost of beginning inventory plus merchandise purchased during a fiscal period to calculate the cost of merchandise sold. |
| Lower of cost or market inventory costing method | Using the lower of cost or market price to calculate the cost of ending merchandise inventory. |
| Average number of days’ sales in merchandise inventory | The period of time needed to sell an average amount of merchandise inventory |
| Retail Method of Estimating Inventory | Estimating inventory by using a percentage based on both cost and retail prices |
| Merchandise inventory turnover ratio | The number of times the average amount of merchandise inventory is sold during a specific period of time |
| Historical Cost | The price paid for items is the price recorded in accounting transactions |
| Consistent Reporting | Transactions must be recorded the same way from one fiscal period to another |
| Matching Expenses with Revenue | Revenue from business activities and expenses associated with earning that revenue are recorded in the same fiscal period |
| Unit of Measurement | Business transactions are stated in numbers that have common values; that is, using a common unit of measurement |
| Adequate Disclosure | Financial statements contain all the information about the condition of a business |
| Do not match me | Do not match me |
