Which Statement Is Incorrect

question 42

Multiple Choice

Which statement is incorrect?

• A)Periodic inventory systems provide better control over inventories than perpetual inventory systems.
• B)Computers and electronic scanners allow more companies to use a perpetual inventory system.
• C)Freight-in is debited to Inventory when a perpetual inventory system is used.
• D)Regardless of the inventory system that is used, companies should take a physical inventory count.

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, which accurately reflects the value of goods and services produced by an economy.

Business Quarter

A division of a year into four parts, each typically lasting three months, used in financial reporting and forecasting.

Nominal Rate

The interest rate before adjustments for inflation, representing the face value of financial products.

Real Rate

The interest rate that has been adjusted for inflation, reflecting the true cost of borrowing or the actual earnings on an investment.