Which of the Following Journal Entries Is Not Consistent with the Use

question 98

Multiple Choice

Which of the following journal entries is not consistent with the use of a periodic inventory system?

• A) Purchases
• \(\quad \) Accounts payable
• B) Inventory
• \(\quad \) Accounts payable
• C) Accounts payable
• \(\quad \) Cash
• D) Accounts receivable
• \(\quad \) Sales revenue

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Definitions:

Dissolution

The process by which a company's existence is legally terminated.

Termination

The act of ending or concluding something, such as a contract, employment, or agreement.

Misrepresentation

Deliberately providing false information to another party, leading them to make decisions they otherwise wouldn't have.

Reliance

In legal terms, it refers to the act of trusting or acting based on the promises or statements of another party, often relevant in contract law.