When Using a Periodic Inventory System

question 71

Multiple Choice

When using a periodic inventory system,

• A) a Purchases account is not used.
• B) a Cost of Goods Sold account is used.
• C) two entries are required to record a sale.
• D) a Cost of Goods Sold account is not used.

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Definitions:

Syntax

The set of rules that governs the structure of sentences in a language.

Insight

The ability to understand the inner nature of things or to gain an intuitive understanding of complex situations.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method or decision.

Trial And Error

A problem-solving method that involves attempting different solutions and eliminating those that do not work.