A Merchandising Company Using a Perpetual System Will Likely Make

question 95

Multiple Choice

A merchandising company using a perpetual system will likely make

• A)the same number of adjusting entries as a service company does.
• B)one more adjusting entry than a service company does.
• C)one less adjusting entry than a service company does.
• D)different types of adjusting entries compared to a service company.

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Definitions:

Every Day

A term denoting something that occurs regularly each day; however, in a financial or business context, it might refer to daily operations or tasks but this usage is not specific.

Petty Cash Fund

A small amount of cash kept on hand in a business for covering minor, routine expenses without issuing checks or electronic payments.

Journal Entry

A record in accounting that represents a transaction where there is at least one debit and one credit in the company's accounts.

Cash Over And Short

An account used to document discrepancies between physical cash counts and the accounting records, due to errors or theft.