When a company uses the perpetual inventory system in accounting for its merchandise inventory, which of the following is true? Multiple Choice The inventory account is updated after each sale The inventory account is updated throughout the year as purchases are made. Cost of goods sold is computed at the end of the accounting period rather than at each sale. None of the other alternatives are correct Purchases are recorded in the cost of goods sold account.
When a company uses the perpetual inventory system in accounting for its merchandise inventory, which of the following is true? Multiple Choice The inventory account is updated after each sale The inventory account is updated throughout the year as purchases are made. Cost of goods sold is computed at the end of the accounting period rather than at each sale. None of the other alternatives are correct Purchases are recorded in the cost of goods sold account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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When a company uses the perpetual inventory system in accounting for its merchandise inventory, which of the following is true?
Multiple Choice
The inventory account is updated after each sale
The inventory account is updated throughout the year as purchases are made.
Cost of goods sold is computed at the end of the accounting period rather than at each sale.
None of the other alternatives are correct
Purchases are recorded in the cost of goods sold account.
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