Term
| The ____ approach to valueing inventory recognizes losses in the period when the value of inventory declines below its cost. |
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Definition
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Term
| GAAP defines market for LCM purposes as the inventory's current replacement cost, except that market should not exceed the ____, or be less than ____ |
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Definition
| net realizable value, net realizable value reduced by a normal profit margin |
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Term
| A loss from the write-down of inventory is reported as either a ____ in the income statement or as ____. |
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Definition
| separate item, cost of goods sold |
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Term
| The gross profit method is not acceptable for the preperation of ____ financial statements. |
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Definition
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Term
| The retail inventory method uses the cost-to-retail percentage based on a current relationship between ____ and ____. |
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Definition
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Term
| A ____ is a reduction in selling price below the original selling price. |
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Definition
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Term
| By the ____ retail inventory method, markdowns are subtracted in the retail column after the cost-to-retail percentage is calculated. |
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Definition
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Term
| By the ____ retail inventory method, markdowns are subtracted in the retail column before the cost-to-retail percentage is calculated. |
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Definition
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Term
| By the conventional retail inventory method, beginning inventory is included in the calculation of the ____. |
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Definition
| cost-to-retail percentage |
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Term
| By the LIFO retail inventory method, beginning inventory is ____ in the calculation of the cost-to-retail percentage. |
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Definition
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Term
| In the retail inventory method, ____ shortage is deducted in the retail column after the calculation of the cost-to-retail precentage. |
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Definition
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Term
| In the retail inventory method, ____ shortage is deducted in both the cost and retail columns before the calculation of the cost-to-retail precentage. |
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Definition
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Term
| In the dollar-value retail LIFO, each layer year carries its unique ____ index and its unique ____ percentage. |
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Definition
| retail price, cost-to-retail |
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Term
| For a change in inventory method other than to ____, prior years' financial statements are revised. |
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Definition
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Term
| Accounting records usually are inadequate for a company changing ____ to employ retrospective treatment. |
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Definition
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Term
| If a managerial inventory error is discovered in an accounting period subsequent to the period in which the error is made, any previous years' financial statements that were incorrect as a result of the error are ____ to reflect the correction. |
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Definition
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Term
| An overstatement of ending inventory in the current year will cause cost of goods sold in the subsequent year to be ____. |
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Definition
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