When a Company Uses the Perpetual Inventory Method,which of the Following

question 48

Multiple Choice

When a company uses the perpetual inventory method,which of the following would be the entry to adjust inventory to lower-of-cost-or-market?

• A) debit Loss on Inventory and credit Merchandise Inventory
• B) debit Merchandise Inventory and credit Inventory Adjustment
• C) debit Cost of Goods Sold and credit Merchandise Inventory
• D) debit Merchandise Inventory and credit Cost of Goods Sold

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Definitions:

Forces

Forces are influences that cause an object to undergo a certain change in motion, direction, or geometrical construction. In physics, forces are what cause acceleration in objects with mass.

Deep Rocks

Rocks formed deep within the Earth's crust, typically characterized by high pressure and temperature conditions.

Atmosphere Interaction

The process by which the Earth's atmosphere interacts with various forces and substances, influencing weather, climate, and various surface processes.

Water Vapor

The gaseous phase of water, present in the atmosphere and a key factor in the Earth's climate system.