Which of the following best describes inventory item linked accounts -

Question

Quizplus · Accepted Answer

Inventory item linked accounts are used to keep track of the cost of goods sold and the value of inventory. When you purchase the item, the asset account is debited, and when you sell the item, the revenue account is credited. Additionally, when you sell the item, the cost of goods sold account is debited to reflect the expense of the item sold. Therefore, all of the choices are correct.

Which of the Following Best Describes Inventory Item Linked Accounts