When Using the Periodic Inventory System, Which of the Following

question 112

Multiple Choice

When using the periodic inventory system, which of the following is not a step in determining cost of goods purchased?

• A)Add freight-in
• B)Subtract purchase returns and allowances
• C)Subtract cost of ending inventory
• D)All of these are necessary steps.

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Definitions:

Wrongful Nature

The characteristic of an act or behavior deemed improper, illegal, or unjust according to societal or legal standards.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful acts of an employee or agent, when such acts occur within the scope of employment or agency.

Liability Policies

Insurance policies that offer protection against claims resulting from injuries and damage to people and/or property.

Insurable Interest

A principle requiring a person to have a legitimate financial or other interest in the life, property, or well-being of the insured subject, to obtain insurance for it.