| A | B |
|---|
| Cost of Goods Sold | revenue (income statement) account which represents the sold inventory cost during a period |
| First In, First Out (FIFO) | first items bought are to be the first items sold |
| Inventory | company's merchandise, materials and products which have not been sold, representing liquid assets to the company |
| Last In, First Out (LIFO) | last items purchased are the first to be sold |
| Manufacturing Inventory | short-term asset, because it can be converted into cash within a year; for example, raw materials, work-in-process, finished products |
| Merchandise Inventory | goods for resale which are classified as short-term assets because they can be converted to cash within a year |
| Periodic Inventory System | method used to update inventory balances periodically instead of constantly |
| Perpetual Inventory System | method used to continuously track inventory amounts |
| Point-of-Sale Terminal | advanced electronic device which performs electronic functions to sell goods and services |
| Stock Record | subsidiary ledger to track inventory on hand, separated into specific types |
| Gross Profit Method | method of estimating ending inventory costs and cost of goods sold based on a ratio of the historic purchase costs and actual sales revenue |
| Weighted Average Method | method which assigns an average cost to each piece of inventory when it is sold during the year; average cost is based on the purchase cost |
