Under the Perpetual Inventory System,in Addition to Making the Entry

question 3

Multiple Choice

Under the perpetual inventory system,in addition to making the entry to record a sale,a company would

• A)record an increase in inventory corresponding to the amount of the sale.
• B)record a decrease in inventory and an increase in cost of goods sold for the cost of the merchandise sold.
• C)record an increase in inventory corresponding to the cost of the inventory.
• D)make no additional entry until the end of the period.

---

Definitions:

Pepsinogen

The precursor of pepsin; secreted by chief cells in the gastric glands of the stomach.

Hydrochloric Acid

A strong corrosive acid that is used in the digestive system to help digest food and kill bacteria.

Herbivores

Animals that eat plants as their primary source of food, using special adaptations to digest a largely vegetarian diet.

Cellulose

An organic compound with the formula (C6H10O5)n, a polysaccharide consisting of a linear chain of several hundred to many thousands of β(1→4) linked D-glucose units, a primary structural component of plant cell walls.