An Account Used in the Periodic Inventory System That Is

question 118

Multiple Choice

An account used in the periodic inventory system that is not used in the perpetual inventory system is:

• A)Inventory
• B)Sales Revenue
• C)Sales Returns & Allowances
• D)Purchases

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Definitions:

General Ledger

A comprehensive archive of all monetary transactions throughout a company's existence, sorted by accounts.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those presented on a bank statement to ensure they align and are accurate.

Bank Reconciliation

The process of matching and comparing figures from the banking statements with the cash account records to ensure accuracy and consistency in financial records.

Petty Cash

A small amount of cash on hand used for covering minor expenses.