Given a Perpetual Inventory System Which One of the Following

question 83

Multiple Choice

Given a perpetual inventory system which one of the following statements is false?

• A) Freight costs incurred by the buyer are added to the Inventory account.
• B) Purchases of merchandise for sale are recorded in the Inventory account.
• C) A discount taken for early payment is credited to the Inventory account.
• D) A return of merchandise is credited to the Purchase Returns and Allowances account.

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Definitions:

Probate

The legal process through which a deceased person’s will is validated and the estate is settled, involving distribution of assets and payment of debts.

Dies Intestate

A legal term describing a situation where a person passes away without having made a valid will, thus leaving their estate to be distributed according to the laws of intestacy.

Legacy

Assets or money passed on to heirs in a will, or a system/software inherited from the past.

Uniform Probate Code

A set of laws intended to simplify the process of transferring assets upon death, and to standardize and modernize probate law across states.