Under the Perpetual Inventory System, Sales Returns Cause

question 114

Multiple Choice

Under the perpetual inventory system, Sales Returns cause:

• A)an increase in Cost of Goods Sold.
• B)an increase in Revenue.
• C)a decrease in Cost of Goods Sold.
• D)no effect on cost of goods sold.

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Definitions:

Annuities

Financial products sold by financial institutions that are designed to accept and grow funds from an individual and then, upon annuitization, pay out a stream of payments to the individual at a later point in time.

Present Value

The current financial value of money to be obtained in the future or upcoming cash flow payments, quantified by a particular rate of return.

Cash Flows

The total amount of money being transferred in and out of a business, especially as affecting liquidity.

Investment

The expenditure of money with the expectation of achieving a profit or material result by putting it into financial schemes, shares, or property.