Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver

Exercise 37

Accounting principles related to inventory and inventory costing methods defined
Review inventory accounting definitions and principles.

Requirement
1. Complete the crossword puzzle using the following clues:
Down:
1. Treats the oldest inventory purchases as the first units sold.
3. Identifies exactly which inventory item was sold. Usually used for higher cost inventory. (Two words)
6. Principle whose foundation is to exercise caution in reporting financial statement items.
7. Business should use the same accounting methods from period to period.
Across:
2. Requires that a company report enough information for outsiders to make decisions.
4. Calculates an average cost based on the purchases made and the units acquired. (Two words)
5. Treats the most recent/newest purchases as the first units sold.
8. Principle that states significant items must conform to GAAP.