Which of the Following Accounts Is Used in the Periodic

question 114

Multiple Choice

Which of the following accounts is used in the periodic inventory system but not used in the perpetual inventory system?

• A)Merchandise Inventory
• B)Sales
• C)Sales Returns and Allowances
• D)Accounts Payable
• E)Purchases

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Definitions:

Inventory Shortage

The situation where the actual inventory on hand is less than what is recorded in the accounting records.

Inventory Count

The physical verification of the quantities and condition of items held in inventory, typically conducted periodically.

Gross Profit Method

An inventory estimation technique that calculates the cost of goods sold to estimate the ending inventory balance.

Purchase Returns

Purchase returns involve goods sent back to the supplier, usually due to defects, inaccuracies, or dissatisfaction, resulting in a refund or credit.