Assume a Company Uses the Periodic Inventory System

question 92

Multiple Choice

Assume a company uses the periodic inventory system. Which of the following accounts would not be affected when recording purchases and related transactions?

• A)Merchandise Inventory
• B)Purchase Returns and Allowances
• C)Purchase Discounts
• D)Purchases

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Definitions:

Invitation

An offer to enter or participate in an arrangement, event, or legal agreement.

Acceptance

The expression of assent to the terms of an offer in such a manner that it forms a legally binding contract.

Unilateral Contract

A unilateral contract is a legally binding agreement where one party promises to do something in return for an act of the other party, who is not legally obligated to act.

Consideration

in contract law, refers to something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.