When the Periodic Inventory System Is Used

question 29

Multiple Choice

When the periodic inventory system is used:

• A) operating profit from the sale of an item from inventory is known when the item is sold.
• B) gross profit from the sale of an item from inventory is known when the item is sold.
• C) cost of goods sold can be calculated by subtracting the ending inventory amount from the sum of beginning inventory and net purchases.
• D)a physical inventory must be taken in order to estimate the cost of goods sold.

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Definitions:

Equation

A declaration in mathematics that claims two expressions, often comprising variables and constants, are equal.

Logarithm

The degree to which a base, typically 10 or e, must be raised to yield a certain number.

Properties

The characteristics, attributes or qualities that an object, substance, or mathematical entity possesses.

Logarithms

The exponents to which a fixed base must be raised to produce a given number.