FIFO.LIFO.Weighted average.Specific identification.Gross margin.The matching principle.The materiality constraint.The cost principle.The conservation constraint principle.The lower of cost or market principle.Managers can ignore the error.It is sometimes said to be self-correcting.It affects only income statement accounts.If affects only balance sheet accounts.Is immaterial for managerial decision making.Costing method.Inventory system (perpetual or periodic).Customer demand for inventory.Use of market values or other estimates.Items included in inventory and their costs.Market value.Historical cost.Lower of cost or market.Replacement cost.Retail value.Historical cost.Current replacement cost.Current sales price.FIFO.LIFO.FIFO.Weighted average.LIFO.Specific identification.All of the inventory valuation methods accomplish this.Prenumbered inventory tickets.A manager does not confirm that all inventories are ticketed once, and only once.Counters must confirm the validity of inventory existence, amounts, and quality.Second counts by a different counter.Counters of inventory should not be those who are responsible for the inventory.Are never counted as inventory.Are included in inventory at their full cost.Are included in inventory at their net realizable value.Should be disposed of immediately.Are assigned a value of zero.Invoice price minus any discount.Transportation-in.Storage.Insurance.Damaged inventory that cannot be sold.Purchases of merchandise to inventory to cash sales.Purchases of merchandise to inventory to accounts receivable to cash sales.Inventory to purchases of merchandise to cash sales.Accounts receivable to purchases of merchandise to inventory to cash sales.Accounts receivable to inventory to cash sales.Is also called the net profit ratio.Measures a merchandising firms ability to earn a profit from the sale of inventory.Is also called the profit margin.Is a measure of liquidity.Should be greater than 1.Merchandise InventorySalesSales Returns and AllowancesAccounts PayablePurchasesThe next periods beginning inventory.The current periods cost of goods sold.The prior periods beginning inventory.The current periods net purchases.The current periods beginning inventory.Is less than the current ratio.Is 1 to 1.Is higher than 1 to 1.Is substantially lower than 1 to 1.Is higher than the current ratio.Gross profit is also called gross margin.Gross profit less other operating expenses equals income from operations.Gross profit is not calculated on the multiple-step income statement.Gross profit must cover all operating expenses to yield a return for the owner of the business.Gross profit equals net sales less cost of goods sold.Required whenever a journal entry is recorded.The source document for the purchase of merchandise inventory.Required when a purchase discount is granted.The document a buyer issues to inform the seller of a debit made to the sellers account in the buyers records.Not necessary in a perpetual inventory system.Accounting for basic inventory transactions is the same under the two systems.The closing process for merchandisers is the same under both systems.U.S. GAAP offers little guidance about the presentation order of expenses.Neither system requires separate disclosure of items when their size, nature, or frequency are important for proper interpretation.Neither system defines operating income.Cost of goods sold.Merchandise available for sale.Ending inventory.Sales.Shown on the balance sheet.Sales returns and allowances can include a reduction is the selling price because of damaged merchandise.Sales returns and allowances do not reflect the possibility of lost future sales.Sales returns and allowances are recorded in a separate contra-revenue account.Sales returns and allowances are rarely disclosed in published financial statements.Sales returns and allowances are closed to the Income Summary account.Adjusted trial balance.Work sheet.Post-closing trial balance.Unadjusted trial balance.General ledger.Office Equipment.Accumulated Depreciation-Office Equipment.Depreciation Expense-Office Equipment.Ted Nash, Capital.Salaries Payable.Owners capital must be closed each accounting period.A post-closing trial balance should include only permanent accounts.Information on the work sheet can be used in place of preparing financial statements.By using a work sheet to prepare adjusting entries you need not post these entries to the ledger accounts.Closing entries are only necessary if errors have been made.Income Summary account.Closing account.Balance column account.Contra account.Nominal account.An expense amount placed in the Balance Sheet Credit column.A revenue amount placed in the Balance Sheet Debit column.A liability amount placed in the Income Statement Credit column.An asset amount placed in the Balance Sheet Credit column.A liability amount placed in the Balance Sheet Debit column.All ledger accounts with balances, none of which can be temporary accounts.All ledger accounts with balances, none of which can be permanent accounts.All ledger accounts with balances, which include some temporary and some permanent accounts.Only revenue and expense accounts.Only asset accounts.the balances reflected in the companys financial statements.the balances reflected in the companys unadjusted trial balance.whatever balances management has decided to report.the balances in the companys post-closing trial balance.the balances management budgeted for the accounting period.Consulting revenue.Withdrawals.Rent expense.Prepaid rent.Income Summary.Real accounts.Contra accounts.Accrued accounts.Balance column accounts.Nominal accounts.Unadjusted trial balance.Post-closing trial balance.General ledger.Adjusted trial balance.Work sheet.