When Using a Perpetual Inventory Method, What Account Is Increased

question 125

Multiple Choice

When using a perpetual inventory method, what account is increased when you buy merchandise inventory?

• A) Cost of Goods Sold
• B) Inventory
• C) Prepaid Assets
• D) Merchandise Expense

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Definitions:

Mass Production

The manufacture of large quantities of standardized products, often using assembly lines or automated technology, which significantly reduces the production cost per unit.

Early 1950s

A period marked by post-World War II recovery and growth, the beginning of the Cold War, and significant social and economic changes worldwide.

Civil War

An internal conflict within a country between different groups or regions, often over issues of governance, territory, or cultural identity.

National Output

The total value of all goods and services produced by a country over a specific period, often measured as Gross Domestic Product (GDP).