Indicate Whether Each of the Following Statements Is True or False

question 150

Essay

Indicate whether each of the following statements is true or false. a)The perpetual inventory system recognizes inventory transactions as they occur.b)The periodic inventory system recognizes sales revenue at the end of the accounting period.c)A physical count of inventory at the end of each accounting period is necessary for the periodic inventory system, as well as for the perpetual inventory system.d)A periodic inventory system requires more detailed record keeping than a perpetual inventory system.e)With a periodic inventory system, cost of goods sold is not determined until the end of the accounting period.

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Definitions:

Excess Profits

Profits that exceed what is considered normal or expected, often due to favorable market conditions or monopoly power.

Price Takers

Firms or individuals who accept the market price as given and have no power to influence that price due to their small size in the market.

Differentiate

To differentiate means to distinguish or make distinctions between two or more items, concepts, or categories based on characteristics or attributes.

Perfectly Elastic

Describes a situation where the quantity demanded or supplied responds infinitely at a particular price level.