Fill in the Blanks: Chapter Eight
3. The ____________consignor is the legal owner of goods on consignment.
4. The process of counting an inventory is called taking a ____________physical inventory.
5. ____________Beginning inventory plus ____________net purchases equals ____________cost of goods available, which can be divided into ____________cost of goods sold for reporting on the income statement and ____________ending inventory for reporting on the balance sheet.
6. The ____________specific identification method requires a business to identify each unit of merchandise with the unit's cost, and retain that identification until the inventory is sold.
7. Under the ____________LIFO inventory method, the most recent costs incurred are assigned to cost of goods sold on the income statement.
8. The ____________FIFO inventory method would cause income to be the highest during a period of rising prices.
9. ____________Consistency requires that accounting and valuation methods be used on a regular basis from year to year.
11. Under the perpetual system, when inventory is sold, the ____________cost of goods sold account is debited and ____________inventory is credited. The ____________purchases account, which is used with a periodic system, is not used with the perpetual system.
12. Under the lower-of-cost-or-market method, market is defined as ____________replacement cost not to exceed ____________net realizable value nor to be less than ____________net realizable value minus a ____________normal profit margin.
13. The ____________gross profit method estimates inventory on the basis of a company's gross profit rate.
14. The ____________retail method is widely used by merchandising firms to value or estimate ending inventory.
15. Understating beginning inventory would cause income for that year to be ____________overstated.