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Weighted Average-Average Cost
Method to assign inventory cost to sales; the cost of available-for-sale units divided by the number of units available to determine per unit cost to each sale that is then multiplied by the units sold to yield the cost of that sale. pg 210
Principle that prescribes the less optimistic estimate when two estimates are about equally likely. pg 214
Receiver of goods owned by another who holds them for purposes of selling them for the owner. pg 204
Owner of goods who ships them to another party who will sell them for the owner. pg 204
Principle that prescribes use of the same accounting method(s) over time so that financial statements are comparable across periods. pg 213
Days' Sale in Inventory
Estimate of number of days needed to convert inventory into receivables or cash; equals ending inventory divided by COGS and then multiplied by 365; also called days stock on hand. pg
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