In a Perpetual Inventory System,two Entries Are Normally Made to Record

question 105

Multiple Choice

In a perpetual inventory system,two entries are normally made to record each sales transaction.The purpose of these entries is best described as follows:

• A)One entry recognizes the sales revenue and the other recognizes the cost of goods sold.
• B)One entry records the purchase of merchandise and the other records the sale.
• C)One entry records the cost of goods sold and the other reduces the balance in the Inventory account.
• D)One entry updates the subsidiary ledger and the other updates the general ledger.

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Definitions:

Herding People

Communities or societies whose primary economic activity involves the raising and herding of livestock.

Hinduism

A major world religion originating on the Indian subcontinent and comprising several and varied systems of philosophy, belief, and ritual.

Buddhism

A religious and philosophical system founded by Siddhartha Gautama ("the Buddha") in the 5th century BCE, centering on the pursuit of enlightenment and liberation from suffering.

Steatite Seals

Small carved objects, often from the Indus Valley civilization, made of soft stone (steatite) and used for stamping on clay or sealing documents.