Question

Consider the following accounting terms and definitions:

Answer 1

Answer:

8. First-In, First-Out (FIFO) - a.

7. Disclosure Principle - b

1. Specific Identification - c

6. Weighted-Average - d

4. Conservatism - e

3. Last-In, First-Out (LIFO) - f

5. Consistency Principle - g

2. Materiality Concept - h

Explanation:

FIFO is a sale technique which provides the oldest stoke of goods as the first sales batch, while LIFO brings the last inventory first.

The materiality concept is a situation where the financial information of a company is said to be material from observing the preparation of the financial statements if it can change the opinion of a reasonable person.

The consistency principle states that once an accounting principle is adopted, it can never be changed. Disclosure principle states that company report must be given to outsiders for knowledgeable decision.