A Company That Makes the Following Journal Entry at the Time

question 33

Multiple Choice

A company that makes the following journal entry at the time of purchasing inventory is using which of the following inventory systems? Dr. Inventory $\quad \mathrm { xxx }$
Cr. Accounts Payable $\quad \mathrm { xxx }$

• A)Periodic system
• B)Perpetual system
• C)Just-in-time system
• D)Specific identification system

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Definitions:

Non-Inventory Items

Goods or services that a company buys or sells but does not track quantities of, such as supplies or consulting services.

QBO

Stands for QuickBooks Online, a cloud-based accounting software designed for small to medium-sized businesses.

Accounting Records

Documents and ledgers that capture all the financial transactions of a business, serving as a foundation for financial reporting.

Physical Count

The act of manually counting inventory on hand to verify records and ensure accuracy in reporting assets.