Which one is true that Every U S company must have the line item cost of goods sold (or cost of sales) in its annual income statement Under the Perpetual Inventory system, every time inventory is purchased from suppliers or returned by customers, the Inventory account is debited Under the Perpetual...

ANSWER B Under the Perpetual Inventory system every time inventory is purchased from suppliers or returned by customers the Inventory account is debit ...

Which one is true that Every U.S. company must have the line item cost of goods sold

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Which one is true that Every U.S. company must have the line item "cost of goods sold (or cost of sales)" in its annual income statement?

Under the Perpetual Inventory system, every time inventory is purchased from suppliers or returned by customers, the Inventory account is debited.
Under the Perpetual Inventory system, every time inventory is purchased from suppliers or returned by customers, the Inventory account is debited.
If it is expensive to spend time and money counting inventory, the company may just use the book balance of inventory to report on the balance sheet. If it is expensive to spend time and money counting inventory, the company may just use the book balance of inventory to report on the balance sheet.
Inventory shrinkage is recorded when there is a decrease in inventory value resulting from such factors as price reduction and excessive sales. Inventory shrinkage is recorded when there is a decrease in inventory value resulting from such factors as price reduction and excessive sales.
Under the Periodic Inventory system, at any point in time, the Inventory account only displays the balance carried from the last balance sheet.
Under the Periodic Inventory system, at any point in time, the Inventory account only displays the balance carried from the last balance sheet.
A big disadvantage of the periodic inventory system is that it does not help to detect differences between physical inventory and book inventory.A big disadvantage of the periodic inventory system is that it does not help to detect differences between physical inventory and book inventory.
All small businesses must use the periodic inventory system because it costs less to administer.All small businesses must use the periodic inventory system because it costs less to administer.
A general journal can be used for recording any type of business transaction. A general journal can be used for recording any type of business transaction.
A special journal is designed for recording one specific type of transaction, and thus, the person maintaining the journal usually does not require an extensive background in accounting.