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:

Price Discrimination

The strategy of selling the same product to different customers at different prices based on their willingness to pay, not differences in production costs.

Fourth of July

A national holiday in the United States commemorating the adoption of the Declaration of Independence on July 4, 1776.

Newspaper Coupon

a voucher printed in newspapers that offers a discount on a particular product or service.

Price-Elastic

A scenario where the quantity demanded or supplied of a good is sensitive to changes in its price.