Which of the Following Statements Is False

question 192

Multiple Choice

Which of the following statements is false?

• A)The inventory account is updated after every sale and after every merchandise purchase under the perpetual inventory system.
• B)The inventory account is updated only at the end of the accounting period under the periodic inventory system.
• C)A cost of goods sold account is updated after each sale of merchandise under the periodic inventory system.
• D)A purchases account is used only under the periodic inventory system.

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Definitions:

Express Approval

Explicit consent or agreement to a proposal or condition, often formally stated or documented.

Authority

The legal power or right given to an individual or body to make decisions, direct others, and enforce obedience.

Partnership Creation

The formation of a partnership through the agreement of two or more individuals to carry on a business for profit as co-owners.

Accounting Partnership

A business arrangement where two or more individuals practice accounting together, sharing responsibilities, profits, and liabilities.