Which of the Following Does NOT Correctly Describe a Perpetual

question 305

Multiple Choice

Which of the following does NOT correctly describe a perpetual inventory system?

• A)Cost of goods sold is calculated every time a sale is made.
• B)Assuming shrinkage of zero, inventory and cost of goods sold do not have to be updated
• At the end of the period.
• C)The use of this system eliminates the requirement for an annual physical inventory count.
• D)Assuming a FIFO cost flow, cost of goods sold would equal that calculated by the periodic
• System.

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Definitions:

Specific Hypotheses

Precise, testable predictions derived from theoretical frameworks that specify the expected relationship between variables.

Observation

The active acquisition of information from a primary source using the senses or recording devices.

Registering Research

involves formally recording the details of a research study before it commences to ensure transparency and reduce publication bias.

Testability

The ability of a hypothesis or theory to be tested through scientific experimentation or observation, allowing for empirical evidence to support or refute it.