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

---

Definitions:

Skeptical

Having an attitude of doubt or a disposition towards incredulity either in general or toward a particular object.

Need to Belong

An inherent human drive to form and maintain strong, stable interpersonal relationships.

Psychologists

Professionals specializing in the science of behavior and mind, encompassing all aspects of conscious and unconscious experience as well as thought.

Fear of Failure

An apprehension or anxiety about failing to achieve a goal or success, which can inhibit risk-taking and growth.