Which Statement Is Not True About Inventory Linked Accounts -

question 4

Multiple Choice

Which statement is not true about inventory linked accounts -

• A)accounts cannot be changed when recording an inventory purchase
• B)accounts cannot be changed in adjustments journal entries
• C)accounts can be changed when recording a sale of inventory
• D)the main way to change the linked asset is to edit the ledger record

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Definitions:

Sustainable Earnings

The portion of a company's profits considered to be repeatable, stable, and able to be maintained over the long term.

P/E Ratio

A valuation metric that compares a company's stock price to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Present Value

The computed present value of a future monetary sum or cash flow sequence, utilizing an established rate of return.

Growth Opportunities

Potential scenarios or plans a business can embark on to increase profits, expand its operations, or enter new markets.