Under the Perpetual Inventory Method, Which of the Following Entries

question 34

Multiple Choice

Under the perpetual inventory method, which of the following entries would be a closing entry at the end of the accounting period?

• A) DR Inventory; CR Profit or loss summary
• B) DR Profit or loss summary; CR Inventory
• C) DR Profit or loss summary; CR Cost of sales
• D) DR Profit or loss summary; CR Purchases

---

Definitions:

Fundamental Attribution Error

A cognitive bias where people overly attribute others' actions to their personality or disposition rather than to external factors.

Situational Influences

The impact of external environmental factors on an individual's behavior, choices, and attitudes at a given moment.

Dispositional Influences

Characteristics or traits of individuals that influence their behaviors and attitudes.

Fundamental Attribution Error

The tendency to overestimate the influence of personality and underestimate the influence of situations when explaining other peoples' behaviors.