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On the choice between those two systems, accounting standards state a requirement that is:
AAbstract
BAbundant
CAbsent
DAbsolute
Answer & Solution
Correct answer: C. Absent
1. Both systems can satisfy the recognition rules.
2. The periodic one uses a Purchases account to do so.
3. So no required system is stated.
_Source: OpenStax Principles of Financial Accounting, Chapter 6, Merchandising Transactions._
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