A Perpetual Inventory System

question 15

Multiple Choice

A perpetual inventory system

• A) Gives a continuous record of the amount of inventory on hand
• B) Uses a Purchases account for the cost of new merchandise purchased
• C) Was historically used by companies that sold large quantities of low-value items
• D) Is not widely used in practice
• E) All of the above

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Definitions:

Exporting

The act of selling goods or services produced in one country to another country.

Importing

The act of bringing goods or services into one country from another for sale.

Account Surpluses

Situations where a country's exports exceed its imports over a given period, leading to a positive balance of trade.

International Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold, facilitating international trade and investment.