Net realizable value is ____ minus the cost of making the sale.
sales price
The inventory account is a ______ account for the inventory subsidiary ledger.
controlling
We use the _____ to decide how much of the cost of the goods available for sale is deducted from sales and how much is carried forward as inventory and matched against future sales.
matching principle
The four inventory and COGS costing methods are ____, ____, ____, and _____.
specific identification, FIFO, LIFO, weighted average
____ assumes costs flow in the order incurred.
FIFO
____ assumes costs flow in the reverse order incurred.
LIFO
____ assumes costs flow at an average of the costs available.
Weighted average
Beginning inventory plus net purchases equals____.
merchandise available for sale
Cost of good sold plus ____ equal cost of goods available for sale.
ending inventory
When each item in inventory can be identified with a specific purchase and invoice, we can use ____ to assign costs.
specific identification
Specific identification is also called ____.
specific invoice inventory pricing
Three key variables determine the dollar value of ening inventory: ___, ____, and ____.
inventory quantity, costs of inventory, cost flow assumptions
Weighted average cost per unit at the time of each sales equals the _____ divided by the units available.
cost of goods available for sale
When purchase costs regularly rise ____ assigns the lowest amount to cost of goods sold-yielding the highest gross profit and net income.
FIFO
When purchase costs regularly rise ____ assigns the highest amount to cost of goods sold-yielding the lowest gross profit and net income.
LIFO
When purchase costs regularly rise ____ yields results between FIFO and LIFO.
weighted average
Managers prefer ____ when costs are rising and incentives exist to report higher income for reasons such as bonus plans, job security and reputation.
LIFO
When costs regularly decline ____ gives the highest cost of goods sold.
FIFO
When costs regularly decline ____ gives the lowest cost of goods sold.
LIFO
____ assigns an amount to inventory on the balance sheet that approximates its curren cost; it also mimics the actual flow of goods for most businesses.
FIFO
____ assigns an amount to cost of goods sold on the income statement that approximates its current cost; it also better matches current costs with revenues in computing gross profit.
LIFO
____ tends to smooth out erratic changes in costs.
Weighted average
When LIFO is used for tax reporting the IRS requires that it also be used in financial statements. This is called the ____.
LIFO conformity rule
Accounting principles require that inventory be recorded at the market value (cost) of replacing inventory when market value is ____ than cost.
lower
Inventory must be adjusted ____ when market is less than cost.
downward
If LCM is applied to items in inventory the ____ is debited and the ____ is credited.
cost of goods sold, Merchandise Inventory
The ____ prescribes the use of the less optimistic amount when more than one estimate of the amount to be received or paid exists and these estimates are about equally likely.
conservatism constraint
Understating inventory ____ cost of goods sold.
overstates
If beginning inventory is understated, the cost of goods sold is ____.
understated
A lower cost of goods sold yields a ____ income.
higher
Inventory turnover equals cost of goods sold divided by ____.
average inventory
A ____ inventory turnover ratio compared to that of competitors suggests inefficient use of assets.
low
Days' sales in inventory equals _____ divided by _____, multiplied by 365.
Ending inventory, cost of goods sold
In the retail inventory method, ending inventory at retail is multiplied by the _____ to reach estimated ending inventory at cost.
cost-to-retail ratio
The _____ method estimates the cost of ending inventory by applying the gross profit ratio to net sales (at retail).
gross profit
The ____ method uses the historical relation between the cost of goods sold and net sales to estimate the proportion of cost of goods sold making up current sales.
gross profit
In the gross profit method the ____ is subtracted from _____ to estimate the ending inventory at cost.
cost of goods sold, cost of goods available for sale

__________________
Every thing is possible with Hard work-but Luck is still factor over there