MANAGEMENT

Detailed explanation-1: -Cost of Goods Sold . If an entity uses a perpetual inventory system, then it continuously updates the COGS account and inventory account after every sales or purchase transaction. Hence, COGS is an account which is normally appeared in the ledger of an entity which uses perpetual inventory system.

Detailed explanation-2: -Under the perpetual inventory system, a record of the cost of goods sold is maintained. Under the periodic inventory system, the cost of goods sold is determined at the end of an accounting period after conducting a periodic inventory count. Therefore, the correct answer is c. Cost of Goods Sold.

Detailed explanation-3: -Answer and Explanation: The correct option is b. purchases. Purchases are measured at the end of each period under the periodic inventory system, not the perpetual inventory system.

Detailed explanation-4: -The cost of goods sold is calculated by adding the beginning inventory and purchases to obtain the cost of goods available for sale and then deducting the ending inventory.

Detailed explanation-5: -Option (c)-Under the perpetual inventory system, the purchase account is not maintained. The inventory purchased is directly recorded under the merchandise inventory account.