Which of the Following Statements Is Correct

question 46

Multiple Choice

Which of the following statements is correct?

• A)The perpetual inventory system uses a separate account for Purchase Returns and Allowances.
• B)The periodic inventory system continually updates the Inventory and Cost of Goods Sold accounts.
• C)The perpetual inventory system requires a closing entry in order to determine Cost of Goods Sold.
• D)The Purchases account is used under both the periodic and perpetual inventory systems.
• E)Under the periodic inventory system,neither the Cost of Goods Sold account nor the Inventory account is updated on a daily basis.

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Definitions:

Cleavage

A property of minerals that describes their tendency to break along flat surfaces based on their crystalline structure.

Strike-Slip Fault

A type of fault where rocks on either side move horizontally past one another, typically a result of shear stress.

Oblique-Slip Faults

Faults that exhibit both vertical and horizontal movement, combining characteristics of strike-slip and dip-slip (normal or reverse) faults.

Ductile Behavior

The ability of a material to undergo significant deformation under stress before breaking, often applied to metals and geological formations.