Unlike the Periodic Inventory System, the Perpetual Inventory System

question 37

Multiple Choice

Unlike the periodic inventory system, the perpetual inventory system:

• A)does not require a physical count of the ending inventory.
• B)includes only the inventory purchased for cash.
• C)provides a continuous record of inventory on hand.
• D)is not required by GAAP.

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Definitions:

Liberally Administered

A principle or policy applied in a manner that is flexible, generous, or not strictly in accordance with strict rules or formalities.

Aggrieved Party

An individual or entity that has suffered legal wrong or harm, and who is entitled to bring a lawsuit against the party responsible for that harm.

Modified Contract

An agreement where the original terms have been altered or amended by the parties involved, following mutual consent.

Consideration

The value (such as money, a promise, or a service) that is given by both parties in a contract making the agreement legally binding.