A Periodic Inventory System Eliminates the Need For

question 71

Multiple Choice

A periodic inventory system eliminates the need for:

• A) Taking an annual physical inventory.
• B) Recording the revenue from sales transactions.
• C) Recording the cost of merchandise sold as sales occur.
• D) None of the above.

---

Definitions:

Average Accounts Receivable

A measure of the average amount of money owed to a company by its customers over a period.

Maturity Date

The specified date on a financial instrument at which the principal (or nominal) amount is due to be paid back in full.

Note Receivable

A note receivable is a written promise to receive a specific amount of money, plus interest if applicable, at a future date, serving as an asset on the balance sheet.

Maturity Date

The specified date on which the final payment of a loan, bond, or other financial instrument is due to be paid.