Two Systems Are Used in Accounting for Inventory-Perpetual and Periodic

question 113

Multiple Choice

Two systems are used in accounting for inventory-perpetual and periodic. Which of the following statements is correct?

• A) In a perpetual inventory system, the inventory account is not changed for each purchase during the accounting period.
• B) In a perpetual inventory system, cost of goods sold is recorded at the time of each sale during the accounting period.
• C) In a periodic inventory system, cost of goods sold is developed from a comparison of beginning inventory and ending inventory only.
• D) In a periodic inventory system, the inventory account is increased for each purchase during the accounting period.

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Definitions:

Bradwell v. Illinois

An 1873 Supreme Court case that upheld a decision denying Myra Bradwell the right to practice law, based on her gender.

Property Rights

Legal rights and interests an individual has in tangible or intangible items, encompassing both ownership and use.

Fourteenth Amendment

is an amendment to the U.S. Constitution that grants citizenship to all persons born or naturalized in the United States, which included former slaves, and provides all citizens with equal protection under the laws.

Scalawag

A term used during the Reconstruction era in the United States to describe Southern whites who supported Reconstruction and the Republican Party, often used derogatorily.