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Match the Statements with the Inventory Systems

Question 175

Matching

Match the statements with the inventory systems.

Premises:

Responses:

The inventory system that provides more control features.

Perpetual inventory system.

The inventory system that requires adjusting (or closing) entries for the beginning and ending inventories.

Periodic inventory system.

A purchase requires two journal entries.

Neither of the above is correct.

A sale requires one journal entry.

Both A and B are correct.

Merchandise inventory is debited when goods are purchased.

A return of a purchase requires two journal entries.

A physical inventory count is never taken.

A sale requires two journal entries.

Cost of goods sold is computed as a residual amount after an inventory count

Premises:

The inventory system that provides more control features.

The inventory system that requires adjusting (or closing) entries for the beginning and ending inventories.

A purchase requires two journal entries.

A sale requires one journal entry.

Merchandise inventory is debited when goods are purchased.

A return of a purchase requires two journal entries.

A physical inventory count is never taken.

A sale requires two journal entries.

Cost of goods sold is computed as a residual amount after an inventory count

Responses:

Perpetual inventory system.

Periodic inventory system.

Neither of the above is correct.

Both A and B are correct.

Correct Answer:

Premises:

Responses:

The inventory system that provides more control features.

The inventory system that requires adjusting (or closing) entries for the beginning and ending inventories.

A purchase requires two journal entries.

A sale requires one journal entry.

Merchandise inventory is debited when goods are purchased.

A return of a purchase requires two journal entries.

A physical inventory count is never taken.

A sale requires two journal entries.

Cost of goods sold is computed as a residual amount after an inventory count

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