In a Periodic Inventory System,at the Time of a Sale

question 86

Multiple Choice

In a periodic inventory system,at the time of a sale the cost of inventory sold is:

• A)Debited to Accounts Receivable.
• B)Credited to Cost of Goods Sold.
• C)Debited to Cost of Goods Sold.
• D)Not recorded at this time.

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Definitions:

Performance Reports

Documented assessments that provide information on the performance of activities, processes, or strategies against planned objectives.

Sales Price Variance

The difference between the actual sales revenue received from a product and the expected revenue, based on the planned selling price and actual quantity sold.

Actual Sales Price

The price at which goods or services are actually sold, which may vary from the list or expected price.

Budgeted Sales Price

Projected price at which a product is expected to be sold, used in financial planning and analysis.