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At the end of the fiscal year, the purchases method of recording inventory adjusts the Expenditures...

At the end of the fiscal year, the purchases method of recording inventory adjusts the Expenditures account to reflect the amount of inventory actually used during the period.

Question 46 options:

True
False
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Answer #1

Answer:-

It is False

Under purchase method of recording inventory, no adjustment entry is made to reflect the actual amount of inventory used.

It is the consumption method, in which expenditures account is adjusted to reflect the amount of inventory actually used during the period.

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