The _____ constraint states that a company should be careful not to overstate assets and revenues and not to understate expenses and liabilities if two estimates are possible
If ending inventory is overstated, then this will be overstated on the income statement at the end of Year 1
If ending inventory is overstated, then total assets will be _____
The LIFO conformity rule states that if a company uses LIFO for tax purposes, it must also use LIFO for its _____
Abbreviation of the inventory cost flow assumption in which the ending inventory consists of the last goods purchased and then going backward in time until all of the units on hand have been assigned a cost
LIFO results in the highest cost of goods sold and the lowest reported income when prices of the inventory are _____
Estimated sales price of inventory minus the estimated cost of making the sale
Inventory _____ is equal to cost of goods sold divided by the average inventory
Down
A company must take a physical count of its inventory at least once a _____
Inventory cost flow assumption that calculates the weighted average cost of inventory on hand by dividing the cost of goods available for sale by the number of units available for sale
The number of different ways a company may apply the lower of cost or market rule
Accounting concept that states a company must choose its accounting methods from the ones allowed and use them consistently
Party that has possession of consigned goods but does not own them
If ending inventory is understated, then equity will be _____
Cost of goods sold is subtracted from _____ on the income statement
Abbreviation of the inventory cost flow assumption in which the last goods purchased are deemed to be the first ones sold
The legal owner of consigned goods
FIFO results in the highest cost of goods sold and the lowest reported income when prices of the inventory are _____
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