A Company That Uses the Perpetual Inventory System Sold Goods $$\begin{array} { | c | l | l | } \hline \text { Accounts receivable } & 3300 & \\\hline \text { Cash } & & 3300 \\\hline\end{array}$$

question 58

Multiple Choice

A company that uses the perpetual inventory system sold goods to a customer for cash for $3300.The cost of the sales was $1300.Which of the following journal entries correctly records this transaction?

• A) \[\begin{array} { | c | l | l | }
• \hline \text { Accounts receivable } & 3300 & \\
• \hline \text { Cash } & & 3300 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | l | l | }
• \hline \text { Cash } & 3300 & \\
• \hline \text { Sales revenue } & & 3300 \\
• \hline
• \end{array}\]
• \[\begin{array} { | c | l | l | }
• \hline \text { Cost of sales } & 1300 & \\
• \hline \text { Inventory } & & 1300 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | l | l | }
• \hline \text { Inventory } & 3300 & \\
• \hline \text { Sales revenue } & & 3300 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | l | l | }
• \hline \text { Cost of sales } & 3300 & \\
• \hline \text { Sales revenue } & & 3300 \\
• \hline
• \end{array}\]

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Definitions:

Fast Food

Food that is prepared and served quickly, often with an emphasis on convenience and typically from a business specializing in such meals.

Division of Labour

The division of labour refers to the allocation of different parts of a manufacturing process or task to different individuals in order to improve efficiency.

Deskilling

Refers to the process by which work tasks are broken into simple routines requiring little training to perform. Deskilling is usually accompanied by the use of machinery to replace labour wherever possible and increased management control over workers.

Scientific Management

Developed in the 1910s by Frederick W. Taylor, is a system for improving productivity. After analyzing the movements of workers as they did their jobs, Taylor trained them to eliminate unnecessary actions. This technique is also known as Taylorism.