Which of the Following Is Not True for a Company

question 36

Multiple Choice

Which of the following is not true for a company using a periodic inventory system?

• A)Cost of goods sold is calculated for each sale.
• B)Cost of goods sold is calculated at the end of the accounting period.
• C)A physical inventory count is performed at the end of the accounting period.
• D)Cost of goods available for sale is calculated at the end of the accounting period.

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Definitions:

Effective Tax Rate

The mean rate at which a person or company pays taxes, determined by dividing the total amount of tax paid by the taxable earnings.

Tax Planning

The analysis and arrangements of a financial situation or business to minimize tax liability.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) for international use.

Deferred Taxes

Taxes that are incurred in one period but are not paid until a future period, often due to timing differences between accounting and tax reporting.