If a Perpetual Inventory System Is in Use,which of the Following

question 58

Multiple Choice

If a perpetual inventory system is in use,which of the following statements about transactions with customers is correct?

• A) When a customer pays within the discount period, Accounts Receivable is credited for the full amount.
• B) If a customer pays within the discount period, Sales Discounts is credited.
• C) A sales return is recorded with entries that include a credit to Sales Returns & Allowances.
• D) Sales of inventory are recorded by entries that include a credit to Cost of Goods Sold.

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Definitions:

Right Brain

The hemisphere of the brain associated with creative, intuitive, and holistic thought processes.

Intuitive

Relating to the ability to understand or know something immediately based on one's feelings rather than facts or evidence.

Market Leader

A company or brand that has the highest sales or market share in a particular industry or sector.

Market Share

The portion of a market controlled by a particular company or product.