Accounting terms | Accounting homework help

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This exercise tests your understanding of accounting for inventory. Provide a word or phrase that best fits the description. Assume that the cost of inventory is rising.
__ 1. Generally associated with saving income taxes.
__ 2. Results in a cost of ending inventory that is close to the current cost of replacing the inventory.
__ 3. Used to account for automobiles, jewellery, and art objects.
__ 4. Maximizes reported income.
__ 5. Inventory system that keeps a running record of all goods bought, sold, and on hand.
__ 6. Characteristic that enables investors to compare a company’s financial statements from one period to the next.
__ 7. Writes inventory down when net realizable value drops below historical cost.
__ 8. Key indicator of a company’s ability to sell inventory at a profit.
__ 9. A decrease in the buyer’s cost of inventory earned by paying quickly.