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:

Organizational Stability

The ability of an organization to maintain continuous operations and strategies despite challenges or changes in the external environment.

Cost-Benefit Analysis

An economic approach to decision-making that compares the financial costs and benefits of a project or decision to determine its viability.

Training Program

An organized and structured series of educational activities or resources designed to enhance the skills, knowledge, and efficiency of employees.

Cognitive Approach

A method in psychology that focuses on understanding how people process information, think, and learn, emphasizing mental functions.