The Journal Entry to Remove the Beginning Inventory Under the Periodic

question 71

Multiple Choice

The journal entry to remove the beginning inventory under the periodic inventory system is:

• A)debit Purchases and credit Cost of Goods Sold.
• B)debit Purchases and credit Inventory.
• C)debit Inventory and credit Cost of Goods Sold.
• D)debit Cost of Goods Sold and credit Inventory.

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Definitions:

Asset Revaluations

The process of adjusting the book value of a company's assets to reflect their current market values.

Stated Value

A value assigned to no-par value stock by the company's board of directors, used as a basis for accounting and financial reporting.

Common Stock

Equity ownership in a corporation, with claims on its earnings and assets being secondary to those of bondholders and preferred shareholders.

Shares

Units of equity ownership in a corporation, representing a portion of the company's capital stock.