When Using a Perpetual Inventory System

question 17

Multiple Choice

When using a perpetual inventory system,

• A)no Purchases account is used.
• B)a Cost of Goods Sold account is used.
• C)two entries are required to record a sale.
• D)all of these.

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Definitions:

Commercial Impracticability

A doctrine under contract law where a party is excused from performing their contractual duties because unforeseen events have made performance excessively burdensome or impracticable.

Excuse Performance

A legal doctrine that allows a party to be released from a contractual obligation when events beyond their control prevent them from performing.

Rejection Is Ineffective

A legal principle indicating that simply refusing or rejecting an offer or contract does not nullify or void its terms or its potential effects.

Notifies The Seller

The act of informing the seller about relevant information or decisions, typically in a commercial transaction.