Which of the Following Statements About the Perpetual Inventory Control

question 2

Multiple Choice

Which of the following statements about the perpetual inventory control method is NOT true?

• A) When a sale is made,two journal entries are required.
• B) When inventory is purchased,it is treated as an expense.
• C) A separate record is kept for each item of inventory.
• D) An inventory count can reveal inventory losses.

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Definitions:

Internal Users

Individuals within an organization, such as management and employees, who use financial and other company information for decision-making purposes.

Accounting Data

Information related to financial transactions and events which are used in the preparation of financial statements.

Public Accountants

Professionals who provide accounting services to various clients, including individuals, businesses, and government entities.

Budgeting

The process of creating a plan to spend your money, forecasting future income and expenses over a specified period.