Mark and Amanda Carter own an appliance store and a restaurant. The appliance store sells merchandise on a 12-month installment plan; the restaurant sells only for cash. (More than one of the following answers may be correct.)
A) The appliance store has a longer operating cycle than the restaurant.
B) The appliance store probably uses a perpetual inventory system, whereas the restaurant probably uses a periodic system.
C) Both businesses require subsidiary ledgers for accounts receivable and inventory.
D) Both businesses probably have subsidiary ledgers for accounts payable.

Question

Quizplus · Accepted Answer

D  The appliance store has a longer operating cycle due to the installment plan, and both businesses likely have subsidiary ledgers for accounts payable to manage their payables efficiently.

Mark and Amanda Carter Own an Appliance Store and a Restaurant