Matching Questions 137. Match each of the following terms with the appropriate definition. 1. The expected sales price of an item minus the cost of making the sale Inventory turnover ...

1. The expected sales price of an item minus the cost of making the sale

Inventory turnover

2. The number of times a company's inventory is sold during a period

Retail inventory method

3. An inventory valuation method where the purchase cost of each item in ending inventory is identified and used to determine the cost assigned to inventory

Net realizable value

4. The accounting principle that aims to select the less optimistic estimate when two or more estimates are about equally likely

Weighted average inventory method

5. An estimate of days needed to convert the inventory at the end of the period into receivables or cash

Conservatism principle

6. An inventory valuation method that assumes costs for the most recent items purchased are sold first and charged to cost of goods sold

Interim statements

7. Financial statements prepared for periods of less than one year

LIFO method

8. An inventory valuation method that assumes that inventory items are sold in the order acquired

FIFO method

9. A method for estimating an ending inventory based on the ratio of the amount of goods for sale at cost to the amount of goods for sale at retail price

Specific identification method

10. An inventory pricing method that assumes the unit prices of the beginning inventory and of each purchase are weighted by the number of units of each in inventory; the calculation occurs at the time of each sale

Days' sales in inventory