Using a Perpetual Inventory System,which Journal Entry(ies)is(are)prepared When Two Units

question 51

Multiple Choice

Using a perpetual inventory system,which journal entry(ies) is(are) prepared when two units of merchandise are sold on account?

• A)debit Accounts Receivable and credit Sales Revenue only
• B)debit Cash and credit Sales Revenue;debit Cost of Goods Sold and credit Inventory
• C)debit Accounts Receivable and credit Sales Revenue;debit Cost of Goods Sold and credit Inventory
• D)debit Accounts Receivable and credit Sales Revenue;debit Inventory and credit Cost of Goods Sold

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Definitions:

Profit Margin

A financial ratio that measures the percentage of profit a company makes for each dollar of sales, indicating overall financial health and profitability.

Profit Margin

A financial ratio used to assess a company's financial health, showing the percentage of revenue that exceeds the cost of goods sold.

Liability

Financial obligations or debts owed by a company or individual to others, which must be settled over time.

Asset

An Asset is any resource owned or controlled by a business or an individual that is expected to produce future economic value.