Which Statement Is Correct About the System Used to Account

question 44

Multiple Choice

Which statement is correct about the system used to account for inventories?

• A)Organizations must use the perpetual system to determine the amount of inventory and cost of goods sold.
• B)The perpetual system is used to determine the amount of inventory and the periodic system is used to determine the cost of goods sold.
• C)The perpetual and periodic system are both acceptable methods to use for inventory control.
• D)The balance sheet under the perpetual system is different than that under the periodic system.

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Definitions:

Potassium

A vital mineral and electrolyte necessary for the proper functioning of nerve and muscle cells, including the heart.

Diuretic

A medication or substance that promotes the production of urine by the kidneys, helping to remove excess water and salt from the body.

Cardiac Catheterization

A medical procedure used to diagnose and treat some cardiovascular conditions by inserting a catheter into a chamber or vessel of the heart.