Asked by Savanna Griffin on Apr 24, 2024
When the perpetual inventory system is used, the inventory sold is shown on the income statement as
A) cost of goods sold
B) purchases
C) purchases returns and allowances
D) net purchases
Perpetual Inventory System
A method of accounting for inventory that updates the inventory levels continuously after each purchase, sale, or return.
Income Statement
An income statement is a financial statement that shows a company's revenues and expenses over a specific period, culminating in net income or loss.
- Gain an understanding of how inventory transactions are recorded in accounting mechanisms.
Learning Objectives
- Gain an understanding of how inventory transactions are recorded in accounting mechanisms.