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:

Regulatory Violations

Acts or omissions by entities that fail to comply with laws and regulations governing their operation.

Ultra Vires

This term refers to acts or deeds conducted outside or beyond the powers of the laws of an entity, especially a corporation's activities exceeding its chartered powers.

Equal Employment Opportunity Commission

A federal agency responsible for enforcing laws against workplace discrimination.

Obiter Dictum

A remark or observation made by a judge in a legal decision that is not essential to the ruling and therefore not legally binding.