Under a Perpetual Inventory System, the Amount of Each Type

question 163

Multiple Choice

Under a perpetual inventory system, the amount of each type of merchandise on hand is available in the

• A) customer's ledger
• B) creditor's ledger
• C) inventory ledger
• D) purchase ledger

---

Definitions:

Circular-Flow Diagram

A model that illustrates the movement of resources, goods, services, and money between households and firms in an economy.

Factors Of Production

The resources used in the production of goods and services, typically classified into four groups: land, labor, capital, and entrepreneurship.

Labor

Tasks undertaken by individuals that aid in generating goods and services within an economy.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the physical factors of production including machinery and buildings.