When a Perpetual Inventory System Is Used, Sales Revenue Is

question 68

Multiple Choice

When a perpetual inventory system is used, sales revenue is recorded as products are sold,

• A)but the cost of the goods sold is not recorded.
• B)and the cost of goods sold is transferred from the Cost of Goods Manufactured to the Cost of Goods Sold account.
• C)and the cost of the goods sold is transferred from the Work in Process Inventory account to the Cost of Goods Sold account.
• D)and the cost of the goods sold is transferred from the Finished Goods Inventory account to the Cost of Goods Sold account.

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Definitions:

Audit Committee

A subgroup of a board of directors that focuses on oversight of the financial reporting processes, internal controls, and audit functions of an organization.

Independent Public Accountants

Professional accountants who perform audits and other financial analysis for businesses, ensuring accuracy and compliance with laws and regulations.

Compensation

Payment or reward given to someone in exchange for their services, loss, or suffering, often in the form of money, benefits, or other valuable considerations.

Quorum

A quorum is the minimum number of members of a deliberative assembly (such as a board or committee) necessary to conduct the business of that group.