Which of the Given Departments Will Immediately Adjust the Vendor

question 31

Multiple Choice

Which of the given departments will immediately adjust the vendor account for each purchase transaction so that the company will know the correct amount owed to the vendor?

• A)Purchasing
• B)Receiving
• C)Accounts Payable
• D)Shipping

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Definitions:

FIFO Perpetual

An accounting method where the first items placed in inventory are the first ones sold, continuously tracking inventory levels.

LIFO Perpetual

A method of inventory valuation where the last items acquired are the first to be used or sold, continuously updated to reflect remaining inventory.

Average Cost Periodic

A costing method where the cost of goods sold and ending inventory are valued at the average cost of all goods available for sale during the period.

Periodic Inventory System

An inventory management method where stock levels are updated at specific intervals through physical counts.