A Physical Count Would Be Necessary at the End of the Accounting

question 65

Multiple Choice

A physical count would be necessary at the end of the accounting period under which inventory system?

• A) Periodic inventory system
• B) Perpetual inventory system
• C) Both periodic and perpetual inventory systems
• D) Neither periodic nor perpetual inventory systems

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Definitions:

Accrued Interest

Interest that has been incurred but not yet paid, often relating to bonds or loans.

Investments-Tetter Company Bonds

Refers to financial assets representing the purchase of Tetter Company's debt securities as an investment.

Comprehensive Income

A measure of all changes in equity of a company that result from recognized transactions and other economic events of the period other than those resulting from investments by and distributions to owners.

Retained Earnings

Profits that a company keeps or retains after paying dividends to shareholders, which are often reinvested in the business or used to pay down debt.