Question

In a perpetual inventory system: Multiple Choice Merchandising transactions are recorded as they occur. No effort is made to record the Cost of Goods Sold until year-end. Entries are made in the Cost of Goods Sold account whenever merchandise is purchased or sold. The need to take physical inventory is eliminated

Answer 1

Answer:

In a perpetual inventory system:

1)Merchandising transactions are recorded as they occur

3) Entries are made in the Cost of Goods Sold account whenever merchandise is purchased or sold

4)The need to take physical inventory is eliminated

Explanation:

In a perpetual inventory system: Merchandising transactions are recorded as they occur.

In periodic system :No effort is made to record the Cost of Goods Sold until year-end. Entries are done at the year end.

In a perpetual inventory system:Entries are made in the Cost of Goods Sold account whenever merchandise is purchased or sold. Costs are assigned to the cost of goods sold each time a sale occurs in a perpetual inventory system.

In a perpetual inventory system:The need to take physical inventory is eliminated.But still it is done to assure the ending inventory.

In periodic system : the physical count cannot be eliminated.