This exercise tests your understanding of accounting for inventory. Provide a word or phrase that best fits the description. Assume that the cost of inventory is rising.

__ 1. Generally associated with saving income taxes.

__ 2. Results in a cost of ending inventory that is close to the current cost of replacing the inventory.

__ 3. Used to account for automobiles, jewellery, and art objects.

__ 4. Maximizes reported income.

__ 5. Inventory system that keeps a running record of all goods bought, sold, and on hand.

__ 6. Characteristic that enables investors to compare a company's financial statements from one period to the next.

__ 7. Writes inventory down when net realizable value drops below historical cost.

__ 8. Key indicator of a company's ability to sell inventory at a profit.

__ 9. A decrease in the buyer's cost of inventory earned by paying quickly.