In a Periodic Inventory System,the Cost of Purchases Is Recognized

question 141

Multiple Choice

In a periodic inventory system,the cost of purchases is recognized as

• A)an integral part of the calculation of cost of goods sold.
• B)the only part of the calculation of cost of goods sold.
• C)an increase in the Inventory account.
• D)an increase in an asset account.

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Definitions:

Moral Law

A set of principles and ethical guidelines that are considered to be universally applicable, often tied to religious or philosophical beliefs.

Positive Law

Law officially enacted or adopted by a government, as opposed to natural or moral law.

Outside Source

An entity or information that originates external to the organization or context currently under discussion or analysis.

Plaintiffs

Parties who initiate a lawsuit in civil court by filing a complaint against defendants.