Choose the one word or phrase that best completes the sentence and fill in the appropriate answer above.
1-
Inventory accounting starts with the inventory on ..........
A -
deck
B -
hand
C -
record
D -
stock
2-
Inventories cannot be ......... until sold, and meanwhile they are considered an asset.
A -
depleted
B -
eliminated
C -
expensed
D -
recorded
3-
There are four generally accepted approaches to inventory valuation based on ......... cost.
A -
basic
B -
historical
C -
physical
D -
presumed
4-
The ......... identification method records actual cost flow: each individual item and its cost must be accounted for.
A -
positive
B -
product
C -
specific
D -
total
5-
The ......... average method divides the total cost of inventory items by their total number at the end of any accounting period.
A -
adjustable
B -
overall
C -
standard
D -
weighted
6-
The moving average method uses an average cost for inventory items that is calculated and ......... at the time of each sale.
A -
added
B -
applied
C -
decided
D -
depicted
7-
The ......... method of inventory evaluation is based on the presumption that most companies normally sell the oldest items in their inventory before they sell the newer ones.
A -
FEFO
B -
FIFO
C -
LIFO
D -
FILO
8-
The ......... method is based on the presumption that the most recent stock items purchased will be the initial items sold.
A -
FEFO
B -
FIFO
C -
LIFO
D -
FILO
9-
The ......... method presumes that the company will continue to keep their oldest items in inventory.
A -
FEFO
B -
FIFO
C -
LIFO
D -
FILO
10-
The ......... method attempts to ensure that perishable products are sold while they are still in good condition.