Asked by
Katelyn Fleming
on Nov 18, 2024
Verified
Under the periodic inventory system, the inventory account continuously discloses the amount of inventory on hand.
Periodic Inventory System
An inventory system in which the inventory records are updated only after a physical count has been taken at periodic intervals, usually at the end of an accounting period.
Inventory Account
An account in the ledger that tracks the cost of goods a company has in stock that are available for sale.
- Distinguish between perpetual and periodic inventory systems and their impact on financial statements.
Verified Answer
KM
Learning Objectives
- Distinguish between perpetual and periodic inventory systems and their impact on financial statements.
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