Asked by
Tony/Tommy Muddy Hao
on Nov 18, 2024
Verified
Under the periodic inventory system, a physical inventory is taken to determine the cost of the inventory on hand and the cost of the goods sold.
Periodic Inventory System
A system in which inventory levels are updated in the accounting records on a periodic basis, typically at the end of an accounting period.
Physical Inventory
A detailed listing of merchandise on hand.
- Identify the distinctions between perpetual and periodic inventory systems and how they influence financial statements.
- Realize the importance of physical inventory and its impact on financial accuracy.
Verified Answer
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Learning Objectives
- Identify the distinctions between perpetual and periodic inventory systems and how they influence financial statements.
- Realize the importance of physical inventory and its impact on financial accuracy.
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