Under the Perpetual Inventory System, in Addition to Making the Entry

question 114

Multiple Choice

Under the perpetual inventory system, in addition to making the entry to record a sale, a company would

• A)debit Inventory and credit Cost of Goods Sold.
• B)debit Cost of Goods Sold and credit Purchases.
• C)debit Cost of Goods sold and credit Inventory.
• D)make no additional entry until the end of the period.

Discern the strategic significance of networks, alliances, and the role of IT in organizational learning.

Comprehend the essentials of bureaucratic and mechanistic organizational designs and their impact on efficiency and adaptability.

Understand the concept of consideration in contract law, including its necessity for a valid contract.

Identify and explain the legal doctrine of promissory estoppel and its application.

---

Definitions:

Average Revenue

The average amount of money received by a firm per unit of output sold, calculated by dividing the total revenue by the number of units sold.

Marginal Cost

The uptick in price resulting from the manufacture of an extra unit of a good or service.

Monopoly Firm

A company that is the sole provider of a product or service in a market, facing no competition.

Profit

The financial gain obtained when the revenues generated from business activities exceed the expenses, taxes, and costs.