In a Perpetual Inventory System,two Entries Are Normally Made to Record

question 105

Multiple Choice

In a perpetual inventory system,two entries are normally made to record each sales transaction.The purpose of these entries is best described as follows:

• A)One entry recognizes the sales revenue and the other recognizes the cost of goods sold.
• B)One entry records the purchase of merchandise and the other records the sale.
• C)One entry records the cost of goods sold and the other reduces the balance in the Inventory account.
• D)One entry updates the subsidiary ledger and the other updates the general ledger.

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Definitions:

Dividend Growth Rates

The annualized percentage rate of growth of a company's dividend payments, indicating the company's dividend payout pattern over time.

Required Return

The smallest annual return rate required to attract individual or corporate investors to a particular security or venture.

Expected Dividend

The projected payment to shareholders, usually expressed as an annual amount.

Required Rate

The least yearly percentage yield that appeals to people or businesses to channel funds into a certain security or project.