Asked by
Tia'rei Fesagaiga-Yagin
on Nov 15, 2024Verified
Which of the following is not true for a company using a periodic inventory system?
A) Cost of goods sold is calculated for each sale.
B) Cost of goods sold is calculated at the end of the accounting period.
C) A physical inventory count is performed at the end of the accounting period.
D) Cost of goods available for sale is calculated at the end of the accounting period.
Periodic Inventory System
An inventory accounting system that records the inventory levels and cost of goods sold (COGS) at the end of an accounting period, not tracking each sale or purchase individually.
Cost Of Goods Sold
Cost of Goods Sold (COGS) is the direct costs attributable to the production of the goods sold by a company, including materials and labor costs.
Accounting Period
A specific duration of time for which financial records are maintained and financial statements are prepared to assess a company's financial performance and position.
- Identify the differences between periodic and perpetual inventory systems.
Verified Answer
JA
Learning Objectives
- Identify the differences between periodic and perpetual inventory systems.