At Which Point in Accounting for Inventory in a Perpetual

question 59

Multiple Choice

At which point in accounting for inventory in a perpetual system is determining the cost of goods sold amount an issue?

• A)When the inventory is acquired.
• B)As the inventory is carried in the warehouse and held for sale.
• C)As the ending inventory is counted.
• D)As the inventory is sold.

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Definitions:

Intangibles

Intangibles refer to non-physical assets that have value, such as intellectual property, goodwill, and brand recognition.

Proceeds

The amount of money obtained from an event or transaction, such as the sale of goods or property.

Creditors

Creditors are individuals, businesses, or entities that are owed money by debtors, typically arising from the provision of goods, services, or loans.

Repossess Property

The act of a lender taking back an object, typically a vehicle or real estate, from the borrower due to failure to meet the terms of the loan agreement.