Which One of the Following Transactions Is Recorded with the Same

question 28

Multiple Choice

Which one of the following transactions is recorded with the same entry in a perpetual and a periodic inventory system?

• A) Cash received on account with a discount
• B) Payment of freight costs on a purchase
• C) Return of merchandise sold
• D) Sale of merchandise on credit

---

Definitions:

Subjective Assessment

An evaluation based on personal judgment rather than quantifiable evidence, often used in scenarios where objective measures are difficult to apply.

Deferred Tax Assets

Future tax benefits obtained due to temporary differences between the book value and tax basis of assets.

Deferred Tax Liabilities

Obligations for taxes owed in the future due to temporary differences between the tax basis of an asset or liability and its reported amount in the financial statements.

Book Income Tax Expense

The amount of income tax a company reports in its financial statements, which may differ from the tax owed to tax authorities.