The Periodic Inventory Method Is a Method of Record Keeping

question 19

Multiple Choice

The periodic inventory method is a method of record keeping that ________.

• A)maintains a constant record of the inventory balance
• B)updates the inventory records only when a sale is made
• C)can be used only in a computerized accounting system
• D)involves calculating cost of goods sold only at the end of the period

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Definitions:

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's earnings distributed to shareholders as dividends.

Market Price

The amount of money a buyer is willing to pay for a good or service in a competitive marketplace.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Common Stock

A type of equity ownership in a corporation, representing a claim on part of the company's profits and assets.