Adv. Accounting - Ch. 6 Review

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A perpetual inventory maintains a continuous record of merchandise inventory increases and decreases

If ending inventory is understated, retained earnings will be overstated

FOB shipping point means that the title to the goods passes to the buyer when the vendor delivers the goods at the buyer's place of business.

A file of stock records for all merchandise on hand is called a(n)

The period of time needed to sell an average amount of merchandise inventory is called the

Comparing inventory costing methods in times of rising prices, the first-in, first-out method will result in the highest cost of merchandise sold

A business may fail if it does not have enough inventory on hand, but will not fail if it has an excess of inventory

The person or business that receives goods on consignment is called the