5 Questions
Which method assumes that the first goods purchased are the first to be sold?
Last-In, First-Out (LIFO)
What term refers to the net sales minus the cost of goods sold?
Gross margin (gross profit)
Which term represents the cost of an asset minus its accumulated depreciation?
Book Value
Which concept involves allocating the cost of an intangible asset over its useful life?
Matching or Expense Recognition Principle
What accounting system updates inventory records continuously after each sale or purchase?
Perpetual inventory system
Test your knowledge of accounting terminology with this quiz covering concepts such as Cost of Goods Sold, Depreciation, F.O.B. terms, Gross Margin, Inventory Valuation, and more.
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