When Accounting for a Merchandising Business, Which of the Following

question 34

Multiple Choice

When accounting for a merchandising business, which of the following is TRUE?

• A)Wholesalers must use the periodic inventory system.
• B)Retailers must use the perpetual inventory system.
• C)Wholesalers must use the periodic inventory system; retailers may use either the perpetual or periodic inventory system.
• D)Retailers and wholesalers may use either the perpetual or periodic inventory system.

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Definitions:

Remote Locations

Areas that are far away from populated centers or difficult to access.

Gold-bearing Conglomerate

A sedimentary rock consisting of rounded pebbles and mineral fragments, among which gold particles are present.

Caldera

A large, cauldron-like depression that forms following the eruption and collapse of a magma chamber beneath a volcano.

Platinum

A dense, malleable, ductile, and highly unreactive precious metal used in jewelry, automotive catalytic converters, and various industrial applications.