Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Net Sales

Financial Accounting

4. Merchandising Operations

Net Sales

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Multiple Choice

Detailed records of goods held for resale are not maintained under a:

Just-in-time inventory system

Specific identification method

Perpetual inventory system

Periodic inventory system

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Verified step by step guidance

Understand the concept of inventory systems: Inventory systems are methods used by businesses to track and manage their stock of goods. The two main types are perpetual and periodic inventory systems.

Learn about the periodic inventory system: In a periodic inventory system, detailed records of goods held for resale are not maintained continuously. Instead, inventory is updated at specific intervals, typically at the end of an accounting period.

Compare with other inventory systems: Perpetual inventory systems continuously update inventory records for every purchase and sale. Specific identification methods track individual items, and just-in-time systems aim to minimize inventory levels by receiving goods only as needed.

Recognize the key difference: The periodic inventory system does not require detailed, ongoing records of inventory. Instead, it relies on physical counts and calculations at the end of the period to determine the cost of goods sold and ending inventory.

Conclude why the periodic inventory system is the correct answer: Since detailed records are not maintained under this system, it aligns with the description provided in the problem.