Cost of Goods Sold Is Determined Only at the End

question 228

Multiple Choice

Cost of goods sold is determined only at the end of the accounting period in

• A) a perpetual inventory system.
• B) a periodic inventory system.
• C) both a perpetual and a periodic inventory system.
• D) neither a perpetual nor a periodic inventory system.

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Definitions:

Capital Gains Distributions

Earnings paid to shareholders from the fund's sale of securities, representing a portion of the profits realized by the investment.

Net Asset Value

The value per share of a mutual fund or an exchange-traded fund, calculated by dividing the total value of all the fund's assets minus liabilities by the number of shares outstanding.

Year-End Assets

The total value of all assets owned by an entity at the end of the fiscal year.

Liabilities

Financial obligations or debts owed by a person or company to others.