Under the Perpetual Inventory System,in Addition to Making the Entry

question 3

Multiple Choice

Under the perpetual inventory system,in addition to making the entry to record a sale,a company would

• A)record an increase in inventory corresponding to the amount of the sale.
• B)record a decrease in inventory and an increase in cost of goods sold for the cost of the merchandise sold.
• C)record an increase in inventory corresponding to the cost of the inventory.
• D)make no additional entry until the end of the period.

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Definitions:

Pyloric Opening

The opening from the stomach into the duodenum, regulated by the pyloric sphincter to control the passage of digested food.

Chyme

A semi-fluid mass of partly digested food that moves from the stomach to the small intestine.

Cholecystokinin

A hormone secreted by cells in the duodenum that stimulates the digestion of fat and protein.

Fatty Acids

Long hydrocarbon chains with a carboxylic acid group at one end, essential components of lipids and important sources of energy.