Under the Periodic Inventory Approach an Appropriate Journal Entry to Measure

question 8

Multiple Choice

Under the periodic inventory approach an appropriate journal entry to measure closing inventory is:

• A) DR Opening inventory (cost of goods sold expense) CR Inventory (asset);
• B) DR Purchases (expense) CR Inventory (asset);
• C) DR Inventory (asset) CR Closing inventory (cost of goods sold expense);
• D) DR Purchases returns (cost of goods sold expense) CR Inventory (asset).

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Definitions:

Connotation

The implied or associated meaning of a word or expression, beyond its explicit or primary meaning.

Stench

A strong and unpleasant smell.

Smell

The sensory perception of odors or scents by organisms, facilitated through the olfactory system.

Metaphor

A figure of speech in which a word or phrase is applied to an object or action to which it is not literally applicable, suggesting a resemblance.