FA Chapter 8 Flashcards
1
Q
Goods available for sale=
A
Beginning inventory+Purchases
2
Q
Cost of Goods Sold=
A
Goods available for sale-ending inventory
3
Q
Gross Profit=
A
Net Sales-Cost of Goods Sold
4
Q
Pretax Income=
A
Gross Profit-Expenses
5
Q
Last In, First Out Method keeps your taxes
A
LOW
6
Q
Weighted Average Cost Method=
A
Cost of goods available for sale/ Number of units available for sale
7
Q
Goods On Consignment
A
Ex. Artist has painting in gallery but still owns it, until its sold
