49. Which of the following ischaracteristic of a perpetualinventory system? *A. Inventory purchases are debited to apurchase discount.B. Inventory records are not kept for everyitem.C. Cost of goods sold is recorded with eachsale.D. Cost of goods sold is determined as theamount of purchases less the change ininventory.

Different types of inventory system are. 1. Periodic inventory system 2. Perpectual inventory system

Answered: 49. Which of the following is a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 24MC: Which of the following accounts are used when recording a purchase using a periodic inventory...

See similar textbooks

Similar questions

Which of the following is not included when computing Net Purchases? A. purchase discounts B. beginning inventory C. purchase returns D. purchase allowances
Which of the following is true about the Sales Returns and Allowances account? a. It is used to record the sale of merchandise. b. It is used to record the reduction of inventory. c. It is a contra account, deducted from sales. d. It is used to record discounts for prompt payment. e. None of the above.
What does an increase in inventory imply? How would this increase in inventory be reported under the indirect method?
Which of the following accounts are used when recording a purchase using a periodic inventory system? A. cash, purchases B. accounts payable, sales C. accounts payable, accounts receivable D. cash, merchandise inventory
Which of the following is not a characteristic of a perpetual inventory system? O Cost of goods sold is recorded with each sale. Inventory purchases are debited to a Inventory account. O Inventory records are kept for every item. O Cost of goods sold is determined as the amount of purchases less the change in inventory.
In Perpetual inventory system the loss of goods is included in a. Sales b. Closing stock c. Purchases d. Cost of goods sold
Which of the following decreases the cost of inventory purchased? CIRCLE ONE: a. Freight Out b. Freight In C. Purchase allowances d. Payment of accounts payable
3.Which of the following transactions would not result in an adjustment to the inventory account under a perpetual inventory system? A)The return of merchandise by a customer. B)The sale of merchandise for cash. C)The sale of merchandise on credit. D)The receipt of payment from a customer within the discount period.
10.Which of the following statement(s) is (are) true about the perpetual system.A. Physical count is unnecessary for the perpetual system.B. The inventory account is used to record purchase returns and discounts.C. The system uses individual subsidiary ledgers for each inventory items.D. A formula is needed to compute for the cost of goods sold.E. The cost of sales account is debited at cost when goods are sold. A, B and C B, C and E C, D and E D, E and C
1. Net purchases equal the invoice amount and?a. plus freight-in, plus discountsb. less purchase returns, plus purchase allowancec. plus freight-in, less purchase discountsd. plus discounts, less purchase returns 2. Cost of Goods Sold is classified as which type of account?a. Assetb. Liabilityc. Revenued. Expense
Under the perpetual inventory system, cost of goods sold is debited when inventory is sold and credited when there is a sales return. True False
The uses of a Purchase Discounts Lost account implies that the recorded cost of a purchase inventory item is its A) invoice price B) invoice price plus the purchase discount lost. C) invoice price less the purchase discount taken D) invoice price less the purchase discount allowable whether taken or not.

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781337280570

Author:

Scott, Cathy J.

Publisher:

South-Western College Pub

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

College Accounting (Book Only): A Career Approach

Accounting

ISBN:

9781337280570

Author:

Scott, Cathy J.

Publisher:

South-Western College Pub

College Accounting, Chapters 1-27

Accounting

ISBN:

9781337794756

Author:

HEINTZ, James A.

Publisher:

Cengage Learning,

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS

49. Which of the following is a characteristic of a perpetual inventory system?