State the accounting term that applies to each of the following definitions.
$$\begin{array} { | l | l | }
\hline \text { Definition } & \text { Accounting Term } \
\hline \text { Businesses should use the same } & \
\text { accounting methods from period to } & \
\text { period. } & \
\hline \text { Treats the oldest inventory purchases as } & \
\text { the first units sold. } & \
\hline \text { Principle whose foundation is to exercise } & \
\text { caution in reporting financial information. } & \
\hline \text { Treats the most recent/newest purchases } & \
\text { as cost of goods sold. }\
\hline
\end{array}$$

Question

State the accounting term that applies to each of the following definitions.
 $$\begin{array} { | l | l | } 
\hline \text { Definition } & \text { Accounting Term } \
\hline \text { Businesses should use the same } & \
\text { accounting methods from period to } & \
\text { period. } & \
\hline \text { Treats the oldest inventory purchases as } & \
\text { the first units sold. } & \
\hline \text { Principle whose foundation is to exercise } & \
\text { caution in reporting financial information. } & \
\hline \text { Treats the most recent/newest purchases } & \
\text { as cost of goods sold. }\
\hline 
\end{array}$$

Quizplus · Accepted Answer

The Answer of State the accounting term that applies to each of the following definitions.
 $$\begin{array} { | l | l | } 
\hline \text { Definition } & \text { Accounting Term } \
\hline \text { Businesses should use the same } & \
\text { accounting methods from period to } & \
\text { period. } & \
\hline \text { Treats the oldest inventory purchases as } & \
\text { the first units sold. } & \
\hline \text { Principle whose foundation is to exercise } & \
\text { caution in reporting financial information. } & \
\hline \text { Treats the most recent/newest purchases } & \
\text { as cost of goods sold. }\
\hline 
\end{array}$$

State the Accounting Term That Applies to Each of the Following