In a Periodic Inventory System,the Cost of Goods Sold Account

question 247

True/False

In a periodic inventory system,the Cost of Goods Sold account is continuously updated as and when sales occur.

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Definitions:

Accounts Payable Subsidiary Ledger

A detailed ledger that contains all individual transactions related to accounts payable.

Payments To Creditors

Money paid out by a business to settle debts owed to suppliers or lenders for goods, services, or loans.

Purchases On Account

Transactions where goods are acquired on credit, with payment to be made at a later date.

Subsidiary Ledger

A detailed ledger that contains account information to support the main general ledger accounts.