Under the Periodic Inventory System,which of the Following Entries Is

question 125

Multiple Choice

Under the periodic inventory system,which of the following entries is prepared at the end of the accounting period?

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

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Definitions:

Diagnosis

The identification of the nature of an illness or other problem through examination of the symptoms and sometimes involving diagnostic tests.

Anchoring Effect

A cognitive bias where individuals rely too heavily on an initial piece of information (the "anchor") when making decisions.

Base Rate Fallacy

A cognitive bias where individuals misjudge the likelihood of an event due to ignoring general statistical information in favor of specific information.

Availability Heuristic

describes a cognitive bias where individuals estimate the likelihood of an event based on how easily examples come to mind.