A Periodic Inventory System

question 15

Multiple Choice

A periodic inventory system:

• A) allows for the determination of cost of goods sold after each sale.
• B) requires a physical inventory count to determine the cost of goods on hand.
• C) requires that detailed inventory records be kept.
• D) requires the use of a cost of goods sold account.

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Definitions:

Commutative Property

A fundamental property of addition and multiplication that states the order of the operands does not change the result, expressed as a+b=b+a or ab=ba.

Multiplication

An arithmetic operation where a number is added to itself a certain number of times, based on another number.

Additive Inverse

The additive inverse of a number is another number that, when added to it, results in zero.

Exponential Expression

An algebraic expression where a number (base) is raised to a power or exponent, representing how many times to multiply the base by itself.