When using a perpetual inventory system,
A) no Purchases account is used.
B) a Cost of Goods Sold account is used.
C) two entries are required to record a sale.
D) All of these are correct.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, no Purchases account is used and a Cost of Goods Sold account is used to record the cost of goods sold. Two entries are required to record a sale - one to record the revenue and another to record the cost of goods sold. Therefore, all of these choices are correct.

When Using a Perpetual Inventory System