Special Journals
Vocabulary
Inventory
Miscellaneous
100
What is definition of Special Journal?  
A journal designed for recording only certain kinds of transactions? 
100
What does FIFO stand for?
First in first out
100
How often do companies take inventory?
Usually once a year
100
What percent of businesses use weighted average?
22%
200
What type of transactions are recorded in the sales journal?
All sales of merchandise on account
200
What is the definition of Inventory?
Any supplies or merchandise a company has on hand.
200
What is the most common method companies use to count inventory?
FIFO
200
How do you find costs of goods sold?
costs of goods available for sale - ending inventory
300
What types of transactions are recorded in the cash payments journal?
All cash payments
300
What is the definition of periodic inventory system? 
No entries are made to the merchandise inventory sold during the year
300
What are the 4 different types of inventory?
Specific Identification

FIFO

Weighted average

LIFO


300
What is the equation to finding gross profit?
Net sales - cost of goods sold
400
What are the 4 special journals that are commonly used by businesses?
Sales journal

Cash receipts journal

Purchases journal

Cash payments journal

400
What is the definition of Perpetual inventory system?
Entries are made to merchandise inventory and costs of goods sold when transactions occur.
400
In times of rising prices, the inventory cost method that will yield the lowest net income is?
LIFO
400
What percentage of businesses use specific identification?
3%
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