Accounting Chapter 9 Vocabulary

Lower-of-Cost-or-Market – when a company has inventory which value can quickly change (technology or fashion) has to do with reevaluating inventory –> practice of conservatism
30. The account type that represents payments to stockholders is called:
A. Liabilities.
B. Assets.
C. Stockholders' equity.
D. Dividends. – D. Dividends.
48. In what order are the following financial statements prepared: (1) balance sheet, (2) income statement, and (3) statement of stockholders' equity?
A. 1, 2, 3.
B. 3, 2, 1.
C. 1, 3, 2.
D. 2, 3, 1. – D. 2, 3, 1.
Capital – The account used to summarize owner's equity
bear the costs – Kosten tragen, übernehmen
Expense, Income Statement – Type and Statement for: Supplies Used
Simon is a very tall 3-year old.  He stands 4' and at a certain time of day casts a shadow of 2.5'.  In his yard is a huge oak tree.  At the same time of day, the tree casts a shadow of 28'.  How tall is the oak tree?
capital social – capital stock
The Nansen Company uses the perpetual inventory system and the moving -average cost method to value inventories. In August, there were 10,000 units valued at $30,000 in the beginning inventory. On August 10, 20,000 units were purchased for $6 per unit. On August 15, 24,000 units were sold for $12 per unit. The amount charged to cost of goods sold on August 15 was
A. $80,000.
B. $120,000.
C. $144,000.
D. $108,000. – B
Simоn is а very tаll 3-yeаr оld.  He stands 4' and at a certain time оf day casts a shadow of 2.5'.  In his yard is a huge oak tree.  At the same time of day, the tree casts a shadow of 28'.  How tall is the oak tree?
When actual indirect costs exceed allocated indirect costs, indirect costs have been overapplied. – False

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