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:

General Supplies

Items commonly used in various settings such as offices, schools, or hospitals, which may include stationary, medical supplies, or cleaning products.

Liquid Hypoallergenic Soap

A soap in liquid form that is specially formulated to minimize the risk of allergic reactions.

Appointment Books

Books or digital tools used for recording dates and times for meetings, medical appointments, or any other planned interactions.

Sterile Gloves

Gloves that have been treated to eliminate all forms of bacteria and other contaminants, used in medical and certain industrial applications to maintain a sterile environment.