The Purchases Journal of a Business That Uses Periodic Inventory

question 72

Multiple Choice

The purchases journal of a business that uses periodic inventory system will include a column titled:

• A)Cost of Goods Sold DR.
• B)Purchases DR.
• C)Accounts Payable DR.
• D)Merchandise Inventory DR.

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Definitions:

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually pay, indicating the benefit consumers receive from purchasing at a market price lower than their maximum willingness to pay.

Ice Cream Cones

Frozen dessert treats served in a conical wafer, typically made by filling the cone with scoops of ice cream from one or more flavors.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing a measure of consumer benefit.

Walmart

An American multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.