Addison, Inc -Under the _____ Inventory Method, Accounting Records Maintain a Continuously

question 89

Multiple Choice

Addison, Inc. uses a perpetual inventory system. The following is information about one inventory item for the month of September:
$\begin{array} { r l l } \text { Sept. } 1 & \text { Inventory } & 20 \text { units at } \$ 20 \\ 4 & \text { Sale } & 10 \text { units } \\ 10 & \text { Purchase } & 30 \text { units at } \$ 25 \\ 17 & \text { Sale } & 20 \text { units } \\ 30 & \text { Purchase } & 10 \text { units at } \$ 30 \end{array}$
-Under the _____ inventory method, accounting records maintain a continuously updated inventory value.

• A) retail
• B) periodic
• C) physical
• D) perpetual

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Definitions:

Consolidated Income Statement

A financial statement that summarizes the revenue, expenses, and profits of a parent company and its subsidiaries.

Bonds Payable

A long-term debt instrument issued by a company or government agency, promising to pay its holder a specified sum of money at a future date plus periodic interest payments.

Open Market

A system where goods and services are traded freely between participants, often characterized by a lack of restrictions or tariffs.

Consolidated Income Statement

A financial statement that combines and presents the total income and expenses of a parent company and its subsidiaries, showing the net profit or loss of the entire group.