Which One of the Following Statements Concerning the Periodic and Perpetual

question 72

Multiple Choice

Which one of the following statements concerning the periodic and perpetual inventory systems is true?

• A) The periodic system uses a purchases account.
• B) Inventory controls are only needed for the periodic inventory systems.
• C) None of the accounting entries vary between the two systems.
• D) Due to advances in computers, many businesses recently have begun to use the periodic inventory system.

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Definitions:

TPS

Transaction Processing Systems are computerized systems that perform and record daily routine transactions necessary to the operation of a business, such as sales order entry, hotel reservations, payroll, employee record keeping, and shipping.

Data

Data refers to qualitative or quantitative attributes of a variable or set of variables.

Knowledge

Data and/or information that have been organized and processed to convey understanding, experience, accumulated learning, and expertise as they apply to a current problem or activity.

Wisdom

The capacity to apply knowledge, experience, understanding, and insight in a judicious and practical way to solve problems or make decisions.