Which of the Following Is Not True of the Perpetual

question 44

Multiple Choice

Which of the following is not true of the perpetual inventory method?

• A) Purchases are recorded as debits to the inventory account.
• B) The entry to record a sale includes a debit to Cost of Goods Sold and a credit to Inventory.
• C) After a physical inventory count, Inventory is credited for any missing inventory.
• D) Purchase returns are recorded by debiting Accounts Payable and crediting Purchase Returns and Allowances.

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Definitions:

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Intellectual Disability

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The testing of unborn babies for the detection of certain diseases or conditions before birth.