Accounting chapter 6
formula for average days in inventory
365 divided by inventory turnover
multiple-step
A ____________ income statement reports multiple levels of income.
balance sheet, current asset
Inventory is reported in the financial statement ____________ as a _______________.
gross profit
Net sales revenue minus cost of goods sold = _____________.
manufactoring
This type of company manufactures the inventories they sell, rather than buying them in a finished form from suppliers.
Formula for inventory turnover
cost of good sold divided by average inventory
inventory
items held for sale in the normal course of business are referred to as ___________
LIFO reserve
the cumulative difference between reporting inventory at LIFO rather than FIFO is commonly referred as the _______________.