In a Perpetual Inventory System That Uses the Gross Method

question 42

Multiple Choice

In a perpetual inventory system that uses the gross method which of the following is true?

• A)When a discount is taken the Purchase Discount account is credited.
• B)The Accounts Payable account is debited for the cash paid.
• C)The Inventory account is reduced when the discount is taken.
• D)The Purchase Discount Lost account is debited when the discount is not taken.

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Definitions:

Triangular Pyramid

A geometric solid with a triangular base and three faces that are also triangles, meeting at a single point called the apex.

Ammonia

A compound of nitrogen and hydrogen with the formula NH3, known for its sharp, pungent odor and use in fertilizers and cleaning products.

Electron Density

A measure of the probability of an electron being present at a specific location around an atom or molecule.

Octahedron

A polyhedron with eight faces, usually referring to a regular octahedron with eight equilateral triangles as faces.