Which of the Following Does NOT Correctly Describe a Perpetual

question 39

Multiple Choice

Which of the following does NOT correctly describe a perpetual inventory system?

• A) Cost of goods sold is calculated every time a sale is made.
• B) Assuming shrinkage of zero, inventory and cost of goods sold do not have to be updated at the end of the period.
• C) The use of this system eliminates the requirement for an annual physical inventory count.
• D) Assuming a FIFO cost flow, cost of goods sold would equal that calculated by the periodic system.

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Definitions:

Occupational Prestige

The perceived status or respect associated with various professions by society, often influenced by factors like education, income, and perceived impact.

Income

The financial gain obtained from work, investments, business, or other sources, typically measured over a certain period.

Single Generation

A reference to individuals born and living in the same time period, sharing similar age-related cultural experiences and characteristics.

Modest

Exhibiting behavior or appearance that is reserved, unassuming, and not seeking to attract attention.