When a Periodic Inventory System Is Used,________

question 183

Multiple Choice

When a periodic inventory system is used,________.

• A)an adjusting entry is needed to record the ending Merchandise Inventory account balance
• B)the process for closing the Income Summary and Dividends accounts differs from the process used in the perpetual inventory system
• C)beginning Inventory,Purchases,and Freight In accounts are closed via the Income Summary Account
• D)there is no need to take a physical count of inventory

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Definitions:

Coupon Rate

The interest rate stated on a bond at the issuance time, which the issuer promises to pay to the bondholder on the face value of the bond.

Coupon Yield

The per annum rate of interest a bond delivers, depicted as a proportion of its par value.

Yield to Maturity

The complete earnings projected from a bond assuming it is retained up to its expiration date.

Yield to Maturity

The total return anticipated on a bond if it is held until it matures, incorporating all coupon payments and the face value received at maturity.