A(n) ________ Is Used to Keep Track of the Actual

question 37

Multiple Choice

A(n) ________ is used to keep track of the actual merchandise flows-what the present inventory level is, when purchased merchandise is scheduled for delivery, and how much has been sold to customers.

• A) model stock plan
• B) fashion-oriented bookkeeping
• C) open-to-buy system
• D) order point
• E) perpetual inventory

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Definitions:

Depreciation Expense

The portion of the cost of a fixed asset that is considered consumed during its period of use by a business.

Prepaid Expenses

Costs incurred before receiving goods or services that are expected to be provided later.

Accounts Receivable

Funds that are due to a company from its customers for goods or services that have been delivered or sold but not yet paid for.

Inventories

are the raw materials, work-in-progress products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.