Under the Perpetual Inventory Method, Additions and Deletions Are Recorded

question 17

Multiple Choice

Under the perpetual inventory method, additions and deletions are recorded as they occur to which of the following?

• A) Finished Goods
• B) Work in Process
• C) Materials
• D) All of the above

---

Definitions:

Collection Time

The average period that it takes for a business to receive payments owed, in terms of receivables, from its customers and clients.

Preauthorized Payments

Financial arrangements allowing a payee to automatically withdraw money from a payer's bank account for recurring bills or subscriptions.

Collection Time

The duration it takes for a business to receive payments owed by its customers.

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, whereby payments are sent directly to a post office box, rather than to the company, to expedite the deposit process.