Under a Periodic Inventory System, Acquisition of Merchandise Is Debited

question 66

Multiple Choice

Under a periodic inventory system, acquisition of merchandise is debited to the

• A)Inventory account.
• B)Cost of Goods Sold account.
• C)Purchases account.
• D)Accounts Payable account.

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Definitions:

Liability

A legal responsibility or obligation that arises from actions, claims, or debts.

Delegation

The act of transferring responsibility and authority from one person or group to another.

Assignment

An assignment involves the transfer of rights or property from one party to another, typically related to contracts, but also applicable in other legal contexts.

Third-Party Beneficiary

An individual or group that stands to benefit from a contract made between two other parties, even though they are not a direct party to the contract.