Which of the following activities would not affect the inventory account for a company that uses the perpetual inventory system?
A)Purchases
B)Purchase returns
C)Advertising
D)Freight-in

Question

Quizplus · Accepted Answer

Advertising is not related to the inventory account and therefore would not impact it for a company using the perpetual inventory system. Purchases, purchase returns, and freight-in are all directly related to inventory and would impact the inventory account.

Which of the Following Activities Would Not Affect the Inventory