Below Is a List of Statements Relating to Inventory Systems

question 152

Essay

Below is a list of statements relating to inventory systems.Each statement describes a characteristic of the periodic and/or perpetual systems.Some statements relate to only one system,some statements relate to both systems,and some relate to neither system.Enter check marks in the blanks to indicate the appropriate system: (a statement may require one,two,or no check marks). $$\begin{array} { | l | l | l | } \hline & \text { Perpetual } & \text { Periodic } \\\hline & \text { Inventory } & \text { Inventory } \\\hline & \text { System } & \text { System } \\\hline \begin{array} { l } \text { (a) When an item is sold, two concurrent accounting } \\\text { entries are made for different amounts. }\end{array} & & \\\hline \begin{array} { l } \text { (b) Cost of goods sold is determined as a residual } \\\text { amount. }\end{array} & & \\\hline \begin{array} { l } \text { (c) At the end of the accounting period, two inventory } \\\text { entries usually must be made in the accounts. }\end{array} & & \\\hline \text { (d) A physical inventory count rarely, if ever, is taken. } & & \\\hline \begin{array} { l } \text { (e) More effective inventory control (such as of theft) is } \\\text { possible. }\end{array} & & \\\hline \begin{array} { l } \text { (f) The amount (balance) in the inventory account } \\\text { throughout the accounting period usually is the } \\\text { beginning inventory amount. }\end{array} & & \\\hline \begin{array} { l } \text { (g) Each purchase is debited to the inventory account } \\\text { throughout the accounting period. }\end{array} & & \\\hline \begin{array} { l } \text { (h) Inventory amounts are determined by actual count. }\end{array} & \\\hline \begin{array} { l } \text { (i) Purchases of merchandise are not debited to the } \\\text { inventory account throughout the period. }\end{array} & & \\\hline \begin{array} { l } \text { (j) The method which usually involves more detailed } \\\text { record keeping. }\end{array} & & \\\hline \begin{array} { l } \text { (k) Inventory amounts are determined from the detailed } \\\text { inventory records. }\end{array} & & \\\hline \begin{array} { l } \text { (1) Only one accounting entry is made when an item is } \\\text { sold. }\end{array} & & \\\hline \begin{array} { l } \text { (m) Only one accounting entry is made to record a } \\\text { purchase of merchandise. }\end{array} & & \\\hline \begin{array} { l } \text { (n) Only one accounting entry is made to record a } \\\text { purchase of merchandise. }\end{array} & & \\\hline\end{array}$$

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Definitions:

Free Association

A psychological method where a patient speaks freely to reveal the unconscious thoughts and emotions that shape behaviors.

Archetypes

Universally recognized symbols or patterns in the human psyche recurring across cultures and literature, often manifesting in dreams, fantasies, and behaviors.

Archetypes

Universally recognized symbols or patterns of behavior that are instinctively understood by all humans, often used in analyzing myths and storytelling.

Defense Mechanisms

Psychological strategies used unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.