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TEST 2 VOCABULARY REVIEW

Teacher: Professor Glenda Evans
Across
Authorizes the purchase of inventory from an approved vendor
Establishes an initial record of the receipt of inventory
Cost flow is in the reverse order in which the cost were incurred.
Cost flow matches the unit sold to the unit purchased.
Cost flow is an average of the costs.
Revenue account for a merchandising business.
Merchandise for sale in the normal course of business
Down
Inventory system that updates the Merchandise Inventory account only at the end of the accounting period based on a physical count of merchandise on hand.
Last document in the chain, use to compare all three for accuracy
Losses of inventory due to theft, damage, spoilage, etc. that cause the actual inventory on hand to be less than that on record.
Inventory system that updates the Merchandise Inventory account for every purchase and sale transaction.
Shipping terms where the ownership of merchandise passes to the buyer when the buyer receives the merchandise.
Payment arrangements determined by the seller as to when invoices are due and whether early payment discount is offered.
Cost flow is in the order in which the costs were incurred.