Question

If a company determines cost of goods sold each time a sale occurs, ita. must have a computer accounting system.b. uses a combination of the perpetual and periodic inventory systems.c. uses a periodic inventory system.d. uses a perpetual inventory system.

Answer 1

Answer:

.d. uses a perpetual inventory system.

Explanation:

The company determiantes the cost of good sold and therefore; their invneotry balance after each purchase, return, allowance, discount or freight are perform. It doesn't use in-between account like freight-in purchase discount, purchase returns and others. It determinates the inventory each time the account is used in a transactions rather than a year-end adjustment with the net purchases