Cost of Goods Sold is the account that is matched with the Sales account to record the company's cost of the inventory that was sold under a perpetual inventory system.

Question

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This statement is true. In a perpetual inventory system, the Cost of Goods Sold account is debited for the cost of goods sold whenever a sale is made. This is matched with the Sales account on the income statement to determine the company's gross profit.

Cost of Goods Sold Is the Account That Is Matched