Asked by Mulham Shbeib on May 21, 2024
Verified
Under a perpetual inventory system,purchases are debited to a purchases account.
Perpetual Inventory System
An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.
Purchases Account
A ledger account in which the total amount of goods purchased during a period is recorded.
- Comprehend the management of inventory acquisitions and expenses through various inventory methodologies.
Verified Answer
HS
Hayden SnydersMay 24, 2024
Final Answer :
False
Explanation :
Under a perpetual inventory system, purchases are debited directly to the inventory account, not to a purchases account.
Learning Objectives
- Comprehend the management of inventory acquisitions and expenses through various inventory methodologies.
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