Which of the Following Is True Under the Perpetual Inventory

question 140

Multiple Choice

Which of the following is true under the perpetual inventory system?

• A) One entry is required to record a sales return.
• B) Cost of goods sold cannot be determined unless a physical inventory is taken.
• C) Two entries are required to record a sale.
• D) A separate account for purchases is required.

---

Definitions:

Seasonal Variation

Seasonal variation refers to periodic fluctuations in statistical data that occur at the same time every year, often due to the influence of social, economic, or environmental factors.

Forecasting Method

A set of statistical tools and techniques used to predict future events based on historical data and trends.

Large Deviations

Significant departures from the mean or median of a distribution, often indicating outliers or unusual variability in a dataset.

Large Errors

Significant deviations between observed values and those predicted or expected, often indicating a model's lack of fit.