Solved

Match Each Key Term with the Appropriate Definition

Question 141

Matching

Match each key term with the appropriate definition.

Premises:
Total markup less markup cancellations.
Increase in selling price after there has been a markdown.
Cost to selling price.
Can be used by an auditor to verify the cost of inventory.
Also known as the retail inventory method.
Increase above the original sale price.
The loss is recorded in a separate inventory account.
Estimated selling price less costs of completion or disposal.
Responses:
additional Mark up
allowance method
conventional retail method
markdown cancellation
net realizable value
net additional markup
markup
gross profit method

Correct Answer:

Total markup less markup cancellations.
Increase in selling price after there has been a markdown.
Cost to selling price.
Can be used by an auditor to verify the cost of inventory.
Also known as the retail inventory method.
Increase above the original sale price.
The loss is recorded in a separate inventory account.
Estimated selling price less costs of completion or disposal.
Related Questions

Q103: The retail inventory method is used extensively

Q131: The gross profit method may be used

Q132: The Slayton Company uses a periodic inventory

Q134: Dahlia adopted the dollar-value LIFO retail inventory

Q135: Ending inventory is over stated due to

Q136: Why would a company elect to use

Q137: In what situations would the gross profit

Q138: What is dollar value LIFO retail method?

Q139: Under special circumstances GAAP allows a company

Q140: Write the appropriate letter for the accounts

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents