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46. When a company uses the periodic inventory system in accounting for its merchandise inventory, which of the following is true? a. Purchases are recorded in the cost of goods sold account. b. The inventory account is updated after each sale. c. Cost of goods sold is computed at the end of the accounting periods rather than at each sale. d. The inventory account is updated throughout the year as purchases are made.

46. When a company uses the periodic inventory system in accounting for its merchandise inventory, which of the following is true? a. Purchases are recorded in the cost of goods sold account. b. The inventory account is updated after each sale. c. Cost of goods sold is computed at the end of the accounting periods rather than at each sale. d. The inventory account is updated throughout the year as purchases are made.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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46. When a company uses the periodic inventory system in accounting for its merchandise inventory, which of the following is true? a. Purchases are recorded in the cost of goods sold account. b. The inventory account is updated after each sale. c. Cost of goods sold is computed at the end of the accounting periods rather than at each sale. d. The inventory account is updated throughout the year as purchases are made.
Transcribed Image Text:46. When a company uses the periodic inventory system in accounting for its merchandise inventory, which of the following is true? a. Purchases are recorded in the cost of goods sold account. b. The inventory account is updated after each sale. c. Cost of goods sold is computed at the end of the accounting periods rather than at each sale. d. The inventory account is updated throughout the year as purchases are made.
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