Which of the Following Items Does Not Result in an Adjustment

question 91

Multiple Choice

Which of the following items does not result in an adjustment in the merchandise inventory account under a perpetual system?

• A) A purchase of merchandise.
• B) A return of merchandise inventory to the supplier
• C) Payment of freight costs for goods shipped to a customer
• D) Payment of freight costs for goods received from a supplier

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Definitions:

Compounded Monthly

Interest calculated monthly on the principal sum plus previously earned interest.

Equal Payments

Regularly scheduled payments of the same amount, common in loans and amortization plans.

Compounded Annually

Interest that is calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan, done once a year.

Compounded Monthly

This refers to the calculation of interest on the initial principal and the accumulated interest over previous periods on a monthly basis.