Under the Perpetual Inventory System, What Is the Entry to Record

question 46

Multiple Choice

Under the perpetual inventory system, what is the entry to record the cost price of goods sold on credit?

• A) Debit inventory, credit cost of sales
• B) Debit cost of sales, credit inventory
• C) Debit cost of sales, credit inventory, credit GST outlays
• D) Debit cost of sales, credit purchases

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Definitions:

Customer Satisfaction

The measure of how products or services provided by a company meet or surpass customer expectation.

Traditional Measurement

A method of evaluating performance or progress using long-established standards or units.

Return On Investment

A measure used to evaluate the performance of an investment by dividing the net profit by the initial cost of the investment.

Cost Variance

The difference between the estimated cost of a project or operation and the actual cost incurred.