Which of the Following Account Titles Is Normally Used in a Periodic

question 104

Multiple Choice

Which of the following account titles is normally used in a periodic inventory system?

• A)Transportation-in.
• B)Purchases.
• C)Purchase Returns and Allowances.
• D)All of these are normally used.

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Definitions:

Journal Entry

A record in accounting that represents a business transaction, indicating the effects on each affected account in debit and credit formats.

Consolidated Statement

Another term for consolidated financial statements, which combine the financial data of a parent company with its subsidiaries into a single comprehensive reporting document.

Shareholders' Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership stake of shareholders.

Acquisition Date

The date on which control of the assets of the acquired entity is transferred to the acquirer.