Accounting 1 Final Flashcards
1
Q
FICO(First In, First Out)
A
- Balance sheet focus
2
Q
LIFO(Last In, First Out)
A
- Income statement focus
3
Q
Results in an old measure of the cost of ending inventory
A
LIFO
4
Q
Produces the lowest cost of goods sold
A
FIFO
5
Q
Matches the most current cost of goods sold against sales revenue
A
LIFO
6
Q
Uses the ratio of cost of goods available for sale to the number of units available for sale to calculate cost of goods sold
A
Weighted-Average
7
Q
Results in cost of ending inventory that is close to the current cost of replacing the inventory
A
FIFO
8
Q
Used to account for unique inventory such as jewelry
A
Specific identification
9
Q
Generally associated with saving income taxes
A
LIFO
10
Q
Maximizes reported income
A
FIFO
11
Q
A
