Which One of the Following Statements Is Not True

question 121

Multiple Choice

Which one of the following statements is not true?

• A)The Inventory account is updated after every sale or purchase of merchandise under the perpetual inventory system.
• B)The Inventory account is updated only at the end of the accounting period under the periodic inventory system.
• C)The Cost of Goods Sold account is updated after each sale of merchandise under the periodic inventory system.
• D)The Purchases account is used only under the periodic inventory system.

Estimate the cost of goods sold and understand its implications.

Understand and calculate budgeted required production and related costs.

Calculate estimated selling and administrative expenses.

Determine the estimated cost of goods sold.

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Definitions:

Monitoring System

A tool or set of tools designed to track performance, activities, or conditions for the purpose of detecting changes or managing control.

Factory Inspections

Reviews conducted in manufacturing facilities to ensure compliance with safety standards, labor laws, and quality control measures.

Supplier Factories

Manufacturing facilities that produce goods or components for other companies, under contract or agreement.

Self-Serving Bias

The common human tendency to attribute positive events to one's own character but attribute negative events to external factors.