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 _______________.