Which of the Following Statements Is Correct Regarding Either the Perpetual

question 49

Multiple Choice

Which of the following statements is correct regarding either the perpetual or periodic inventory systems?

• A)In a perpetual inventory system,the amount of inventory is not known until the end of the period when the inventory count is taken.
• B)In a perpetual inventory system,cost of goods sold is recorded at the time of each sale during the accounting period.
• C)In a periodic inventory system,cost of goods sold is developed only from a comparison of beginning inventory and ending inventory.
• D)In a periodic inventory system,the inventory account is increased for each purchase during the accounting period.

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Definitions:

Right

A moral or legal entitlement to have or do something; often considered fundamental and inherent.

Accident

A logical fallacy that occurs when an argument mistakenly applies a general rule to a specific case to which the rule does not appropriately apply.

Fallacy

A logical error or misleading argument often used in reasoning or debate.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of all known living organisms.