Inventory for a Business Using the Periodic Inventory System Appears

question 166

Multiple Choice

Inventory for a business using the periodic inventory system appears on the:

• A)balance sheet and statement of owner's equity, respectively.
• B)statement of owner's equity and income statement, respectively.
• C)balance sheet and income statement, respectively.
• D)income statement and cash flow statement, respectively.

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Definitions:

Donor

A person who makes a gift.

Mutual Benefit Bailment

A bailment arrangement where both the bailor and the bailee receive a benefit from the transaction involving personal property.

Reasonable Care

The degree of caution and consideration an individual or organization is expected to exercise in a particular situation to avoid harm to others or their property.

Bailment

A legal relationship where physical possession of personal property is transferred from one person to another under the agreement that the property will be returned.