When Using Periodic Inventory,the Closing Process Begins with Closing Out

question 126

True/False

When using periodic inventory,the closing process begins with closing out the Beginning inventory to Cost of goods sold.The second step is to set up the ending inventory by debiting Cost of goods sold and crediting Inventory.

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Definitions:

Complex Purchase

Purchasing decisions that involve extensive research and consideration due to factors like high cost, long-term commitments, or personal importance.

Sales Promotion

A set of nonpersonal communication tools designed to stimulate quicker and more frequent purchases of a product.

Personal Selling

The two-way flow of communication between a salesperson and a customer that is paid for by the firm and seeks to influence the customer’s purchase decision.

Summary Close

A sales technique where the main points of the presentation are summarized to reinforce the value of the offer and encourage a decision.