Under the Periodic Inventory System,which of the Following Statements Is

question 235

Multiple Choice

Under the periodic inventory system,which of the following statements is correct?

• A) During the period, the business records the cost of all inventory bought in the Merchandise Inventory account.
• B) Purchase Returns and Allowances and Purchase Discounts are contra expense accounts.
• C) Freight in is debited to the Purchases account.
• D) Purchase discounts are recorded as credits to the Purchases account.

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Definitions:

Compounded Quarterly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a quarterly basis.

Semi-Annually

Occurring twice a year, typically every six months, often used in the context of payments, interest calculations, or reporting periods.

Compounded Quarterly

An interest calculation method where interest is added to the principal sum of a deposit or loan every quarter, so that each subsequent interest calculation is made on the principal plus previously added interest.