Assuming the Use of the Perpetual Inventory Method Which of These

question 36

Multiple Choice

Assuming the use of the perpetual inventory method which of these entries would be a closing entry at the end of the accounting period?

• A)Debit Inventory; credit Profit and Loss Summary
• B)Debit Profit and Loss Summary; credit Inventory
• C)Debit Profit and Loss Summary; credit Purchases
• D)Debit Profit and Loss Summary; credit Cost of Sales

---

Definitions:

Rent

A payment made by a tenant to a landlord for the use of a property or space.

Capitalism

Capitalism is an economic system characterized by private ownership of the means of production, market-based allocation of resources, and the creation of goods and services for profit.

Private Enterprise System

An economic system where private individuals or businesses own capital goods and the production of goods and services is based on supply and demand in the general market.

Intellectual Inputs

Contributions of knowledge, ideas, expertise, and intellectual property to a project, organization, or production process.