When Recording the Sale of Merchandise Inventory,using a Periodic Inventory

question 251

Multiple Choice

When recording the sale of merchandise inventory,using a periodic inventory system,________.

• A) a running record of merchandise inventory is maintained during the accounting period
• B) the Sales Revenue account is credited only as an adjusting entry because sales information is not needed during the accounting period
• C) sales discounts are not recorded
• D) there is no need to record an entry to the Merchandise Inventory and the Cost of Goods Sold accounts

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and buildings, used by a business to produce goods or services.

Industrial Development

The process of establishing and growing industries in a region, often leading to economic growth and societal changes.

Trust Organization

An arrangement whereby assets are managed by one party for the benefit of another, often used in business to monopolize industries and markets.

Textiles

Materials or fabrics made from weaving, knitting, or felting fibers, used in the production of clothing, furniture, and other goods.