Which of the Following Is NOT an Advantage of the Perpetual

question 2

Multiple Choice

Which of the following is NOT an advantage of the perpetual over the periodic inventory method?

• A) A continuous record of inventory on hand is furnished.
• B) Inventory theft is more likely to be detected.
• C) Recording of inventory is less costly to monitor.
• D) The perpetual inventory system provides a continuous record of cost of goods sold.

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Definitions:

Dividends Are Expected

A statement indicating that shareholders anticipate receiving a share of the profits from a company, usually distributed in the form of cash payments.

Investors Require

The expected return or conditions that investors seek before committing capital to an investment or project.

Current Price

Current Price is the market price at which an asset or service can be bought or sold at a particular time.

Expected Dividend

The anticipated amount that will be paid out in dividends to shareholders of a company, based on past and projected profitability.