A Company That Uses the Perpetual Inventory System Sold $1,000

question 147

Multiple Choice

A company that uses the perpetual inventory system sold $1,000 of goods to a customer for cash. Which of the following journal entries correctly records the Sales revenue?

---

Definitions:

Liabilities

Liabilities represent obligations or debts that a company owes to external parties, which must be settled through the transfer of assets or services.

Assets

Economic resources owned by a business or individual, expected to bring future benefits.

Net Income

The total profit or loss of a business after all expenses, taxes, and costs have been subtracted from total revenue.

Net Loss

A situation where total expenses exceed total revenues, indicating a negative profit.