Under a Periodic Inventory System, Closing Entries Will Include

question 219

Multiple Choice

Under a periodic inventory system, closing entries will include

• A) debits to Sales, Purchases Returns and Allowances, and Purchases Discounts
• B) credits to the Allowance for Doubtful Accounts
• C) adjustments to the inventory account to match physical inventory
• D) all of these

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Definitions:

Direct Transfer

A method of transferring assets or funds from one account to another without any intermediary processing steps.

Secondary Market

Sales of existing securities between investors. Compare with Primary market.

Stock

An ownership share in a corporation, representing a claim on part of the company's assets and earnings.

Transaction

An instance of buying or selling something; a business deal or financial arrangement between two parties.