With a Perpetual Inventory System,assets and Equity Increase by the Amount

question 136

True/False

With a perpetual inventory system,assets and equity increase by the amount of the gross margin when inventory is sold.

---

Definitions:

Normal Rate

A standard or usual level of financial return on investment or interest on loans.

Supply

The total amount of a product or service that is available to consumers at a given price over a specific period.

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.

Industry Supply Curve

A graphical representation showing the relationship between the price of a good and the total output of the industry at various prices.