After Inventory Is Sold to a Customer, Even Though the Sale

question 90

True/False

After inventory is sold to a customer, even though the sale is completed, there are usually circumstances for which the goods may be returned.

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Definitions:

Perpetual Inventory System

A method of accounting for inventory that records sales and purchases of inventory instantly through the use of computerized point-of-sale systems and enterprise asset management software.

FIFO

An inventory valuation method that assumes the first items placed in inventory are the first sold (First In, First Out).

Cost of Goods Sold

Specific costs directly linked to the creation of products sold by a business.