Questions
Single choice
In a perpetual inventory system, which of the following is recorded at the time of the sale?
Options
A.Cost of goods sold only
B.Both sales revenue and cost of goods sold
C.Sales revenue only
D.Neither sales revenue nor cost of goods sold
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Step-by-Step Analysis
Restating the question: In a perpetual inventory system, which of the following is recorded at the time of the sale?
Option 1: Cost of goods sold only
This is incomplete. In a perpetual system, when a sale occurs, not only is the cost of the inventory that was sold recognized, but revenue from the sale is also recorded. Mis......Login to view full explanationLog in for full answers
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