Which of the Following Statements About the Perpetual Inventory Control

question 54

Multiple Choice

Which of the following statements about the perpetual inventory control method is NOT true?

• A) When a sale is made,two journal entries are required.
• B) When inventory is purchased,it is treated as an expense.
• C) A separate record is kept for each item of inventory.
• D) None of the above;all statements are true.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, at a given time.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price during a specified time period.

Price

The price expected, requisite, or delivered in remuneration for an object or service.

Market Price

The contemporary valuation at which a commodity or service can be acquired or disposed of in a commercial environment.