Skip to main content
Pearson+ LogoPearson+ Logo

Specific Identification definitions Flashcards

Specific Identification definitions
Control buttons has been changed to "navigation" mode.
1/15
  • Specific Identification Method
    Inventory valuation approach used when each item is unique or easily tracked, allowing precise matching of cost to each unit sold.
  • Inventory Valuation
    Process of assigning monetary value to goods held for sale, crucial for financial reporting and profit calculation.
  • Unique Inventory
    Goods that are distinguishable from one another, often due to customization or high value, enabling individual tracking.
  • Cost of Goods Sold
    Expense representing the original purchase price of inventory items that have been sold during a period.
  • Ending Inventory
    Total value of unsold goods remaining at the end of an accounting period, based on their original purchase cost.
  • Journal Entry
    Formal accounting record documenting the financial impact of a transaction, including debits and credits.
  • Revenue
    Total income generated from selling goods or services before deducting any costs or expenses.
  • Accounts Receivable
    Asset representing money owed by customers for goods or services delivered but not yet paid for.
  • Gross Profit
    Difference between total sales revenue and the cost of goods sold, indicating profitability from core operations.
  • Cash
    Immediate payment received in currency or its equivalents, increasing a company's liquid assets.
  • Asset
    Resource owned by a business, such as cash or receivables, expected to provide future economic benefit.
  • Inventory Balance
    Current total value of goods available for sale, updated after each transaction involving inventory.
  • Credit
    Accounting entry that increases liabilities or equity, or decreases assets, often used to record revenue.
  • Debit
    Accounting entry that increases assets or expenses, or decreases liabilities or equity, reflecting value received.
  • High-Value Goods
    Items with significant monetary worth, often tracked individually due to their impact on financial statements.