Which of the Following Account Titles Is Normally Used in a Periodic

question 119

Multiple Choice

Which of the following account titles is normally used in a periodic inventory system?

• A) Transportation-in
• B) Purchases
• C) Purchase Returns and Allowances
• D) All of these

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Definitions:

Stockholders' Equity Accounts

Accounts on a company's balance sheet that represent the ownership interest of shareholders, including common stock, retained earnings, and additional paid-in capital.

Credits

Accounting entries that increase liabilities or equity accounts, or decrease asset or expense accounts, reflecting the sources of the value in the transaction.

Journalizing

The process of recording transactions in the journal in chronological order.

Fraudulent Activity

Intentional deceit or trickery used to gain some unfair or dishonest advantage, often involving financial transactions.