Which of the Following Accounts Would Be Included in the Chart

question 65

Essay

Which of the following accounts would be included in the chart of accounts of a merchandising company using the (a)periodic inventory system,(b)perpetual inventory system,or (c)both systems?
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(1)Purchases
(2)Inventory
(3)Sales
(4)Purchases Discounts
(5)Cost of Goods Sold
(6)Freight In
(7)Delivery Expense

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Definitions:

Accounting Period

A span of time during which financial events are recorded and compiled into financial statements.

Variable Costs

Expenditures that fluctuate with the quantity of production or the volume of sales.

Specific Decision

A choice made in a particular situation, often necessitating the consideration of relevant information and specific circumstances.

Prime Cost

The sum of direct materials and direct labor costs associated with the production of goods.