Under a Perpetual Inventory System, Purchase of Inventory Is Recorded

question 137

Multiple Choice

Under a perpetual inventory system, purchase of inventory is recorded as a debit to the

• A)Supplies account.
• B)Purchases account.
• C)Inventory account.
• D)Cost of Goods Sold account.

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Definitions:

Recorded

This term signifies the process of documenting transactions and events in the accounting records of a business.

Major Account Groups

Categories used in accounting to organize and summarize financial transactions, including assets, liabilities, equity, revenue, and expenses.

Basic Chart

A visual representation of data designed to display simple information clearly and concisely, often used in reporting and analysis.

Account Number

An Account Number is a unique identifier assigned to each account within a bank or financial institution, facilitating the management, tracking, and distinction of transactions.