When Using a Perpetual Inventory Method, What Account(s) Must Be

question 76

Multiple Choice

When using a perpetual inventory method, what account(s) must be updated when a sale is recognized?

• A) Cost of Goods Sold
• B) Supplies
• C) Merchandise Inventory
• D) Both A and C are correct.

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Definitions:

Emissions Tax

A tax on the production, sale, or use of goods that produce pollutants, intended to reduce the harm they cause to the environment.

Marginal Benefit

The added gain achieved by consuming an additional unit of a product or service.

Marginal Benefit

The enhanced pleasure or value a person gains upon consuming one more unit of a particular good or service.

Emissions Tax

A tax imposed on companies for the pollution they produce, intended to motivate them to reduce pollutants and adopt cleaner processes.