Under the Perpetual Inventory System, in Addition to Making the Entry

question 114

Multiple Choice

Under the perpetual inventory system, in addition to making the entry to record a sale, a company would

• A)debit Inventory and credit Cost of Goods Sold.
• B)debit Cost of Goods Sold and credit Purchases.
• C)debit Cost of Goods sold and credit Inventory.
• D)make no additional entry until the end of the period.

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Definitions:

Pollution

The presence or introduction into the environment of contaminants that cause harm or discomfort to organisms and the environment.

Government

The organization or system through which a community or nation is governed and regulated.

Market Mechanism

The process by which supply and demand interact to determine the prices and quantities of goods and services in a market economy.

Allocate Goods

The process of distributing resources or products to where they are needed or can be used most effectively.