If a Business Uses the Periodic Inventory System, the Sales

question 66

Multiple Choice

If a business uses the periodic inventory system, the sales journal:

• A)will record both the cash and credit sales.
• B)will include a Purchase DR and Account Receivable CR column.
• C)will exclude the Accounts Receivable DR and Sales Revenue CR column.
• D)will not include the Cost of Goods Sold DR and Merchandise Inventory CR column.

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Definitions:

Equilibrium Price

The market price at which the quantity of goods supplied equals the quantity of goods demanded.

Equilibrium Quantity

The quantity of goods or services supplied that equals the quantity demanded at the market equilibrium price.

Positively Sloped

A line or curve on a graph that increases in value as it moves from left to right, indicating a direct relationship between two variables.

Negatively Sloped

A descriptor for a line on a graph that moves downwards from left to right, indicating an inverse relationship between the variables plotted.