Under the Periodic Inventory System, Which of the Following Amounts

question 126

Multiple Choice

Under the periodic inventory system, which of the following amounts will always stay the same irrespective of the inventory valuation method used?

• A)ending merchandise inventory
• B)cost of goods sold
• C)gross profit
• D)purchases

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Definitions:

Honesty

The quality of being truthful and free from deceit or fraud.

Holder In Due Course

A legal term for a party that has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defects in title and prior claims.

Consideration

The value (such as money, service, or goods) that is exchanged between parties in a contract, making the agreement legally binding.

Value

The importance, worth, or usefulness of something, often in terms of money, social benefits, or personal significance.