Under the Perpetual Inventory System, Which of the Following Accounts

question 76

Multiple Choice

Under the perpetual inventory system, which of the following accounts would not be used?

• A)Sales
• B)Purchases
• C)Cost of Goods Sold
• D)Merchandise Inventory

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Definitions:

Market Forces

The economic factors affecting the price, demand, and availability of goods and services in a market economy, primarily supply and demand.

Full Employment

A situation in which all available labor resources are being used in the most economically efficient way, typically characterized by the absence of cyclical unemployment.

Keynes

Refers to the economic theories and policies advocated by John Maynard Keynes, which emphasize government intervention to manage economic cycles and stimulate economy-wide demand.

Classical School

An economic theory originating in the late 18th century, emphasizing free markets, competition, and the minimal role of government in the economy.