Which One of the Following Transactions Is Recorded with the Same

question 155

Multiple Choice

Which one of the following transactions is recorded with the same entry in a perpetual and a periodic inventory system?

• A)Cash received on account with a discount
• B)Payment of freight costs on a purchase
• C)Return of merchandise sold
• D)Sale of merchandise on credit

---

Definitions:

Firm Commitment

An underwriting agreement in which an underwriter buys all the securities from the issuer and resells them to investors.

Investment Banker

A professional who works in a financial services company or division that specializes in raising capital for companies, governments, or other entities.

Initial Margin

The upfront payment required when opening a position in the futures market, serving as a guarantee for future contract fulfillment.

Primary Market

The market in which new issues of securities are offered to the public.