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If Management Wants to Know the Cost and Quantity of Merchandise

Question 3

Multiple Choice

If management wants to know the cost and quantity of merchandise on hand at all times, the business will probably:


A) Use a periodic inventory system.
B) Maintain an inventory subsidiary ledger.
C) Take a complete physical inventory each day.
D) Debit all purchases of merchandise directly to the Cost of Goods Sold account.

Correct Answer:

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