When Using a Perpetual Inventory System, Why Are Discounts Credited

question 181

Multiple Choice

When using a perpetual inventory system, why are discounts credited to Inventory?

• A)The discounts are debited to discount expense and thus the credit has to be made to merchandise inventory.
• B)The discounts reduce the cost of the inventory.
• C)The discounts are a reduction of business expenses.
• D)None of these answers choices are correct.

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Definitions:

Refractory Periods

Refractory periods are times following an action potential during which a neuron is less responsive to stimuli, ensuring the unidirectional flow of the signal.

Synaptic Knob

The end part of an axon that makes a synaptic contact with another neuron, responsible for the release of neurotransmitters.

Decremental

Describes a process or signal that decreases in size, amplitude, or magnitude over time.

Potassium And Sodium Ion Channels

Protein channels located in cell membranes that allow potassium and sodium ions to move across, vital for processes such as nerve impulse transmission.