The Journal Entries Required for Purchase and Sales Transactions Using

question 44

Multiple Choice

The journal entries required for purchase and sales transactions using the perpetual system are more complex than under the periodic system but offer the advantage of

• A)requiring the additional control of a physical inventory count whenever accurate inventory amounts are needed.
• B)delaying the majority of the accounting effort until year-end.
• C)requiring the use of the average cost method.
• D)providing management with more complete information from which to control inventories.

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Definitions:

Infant

In legal terms, refers to a person who is under the age of majority, and thus limited in their legal capacity to contract or make decisions.

Defame

To damage someone's reputation, name, or character through false and malicious statements.

Guarantee

A formal pledge to ensure the fulfillment of a contract or the performance of an obligation, sometimes by providing a replacement or repair in case of default.

Restraint of Trade

Limitations or restrictions on individuals' or companies' business conduct aimed at promoting fair competition and reducing monopolistic practices.