In a Perpetual Inventory System,the Flow of Inventory Cost Is

question 53

Multiple Choice

In a perpetual inventory system,the flow of inventory cost is:

• A)First through the income statement,then through the balance sheet.
• B)First through the balance sheet,then through the income statement.
• C)Only through the balance sheet and not the income statement.
• D)Only through the income statement and not the balance sheet.

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Definitions:

Increase in Demand

A situation where there is a rise in the quantity of a product or service that consumers are willing and able to buy at given prices.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers over a certain period.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a specified period of time.

Increase in Demand

A shift of the demand curve to the right, indicating that consumers are willing and able to purchase more of a good or service at every price.