When Using a Perpetual Inventory System

question 44

Multiple Choice

When using a perpetual inventory system,

• A) no Purchases account is used.
• B) a Cost of Goods Sold account is used.
• C) two entries are required to record a sale.
• D) All of these are correct.

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Definitions:

Real Asset

Physical or tangible assets that have value, such as real estate, commodities, and natural resources.

Finance

The study and management of money, investments, and other financial instruments. It involves the processes of creating, managing, and investing capital.

Asset

An economic resource that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Financial Assets

Assets such as stocks, bonds, bank deposits, or any other instrument that derives value because of a contractual right or ownership claim.