Which of the following statements about a periodic inventory system is not correct? Select one: A....
Which of the following statements about a periodic inventory system is not correct?
Select one:
A.
The system does not include an up-to-date inventory ledger.
B.
These systems are used primarily by small businesses with manual accounting systems.
C.
The balance in the Inventory account remains unchanged until the end of the period.
D.
The Cost of Goods Sold account is updated as sales transactions occur.
Homework Answers
Correct Answer is:
D.The Cost of Goods Sold account is updated as sales transactions occur.
Explanation:
Periodic inventory system refers to the calculation of inventory at the regular interval which means that inventory is not updated every time when any sales or purchase is made. Hence, cost of goods sold will also be calculated at the time of calculation of periodic inventory only and not with every sales transactions. Hence, Option D is incorrect.
Add Answer to:
Which of the following statements about a periodic inventory
system is not correct?
Select one:
A....
Which of the following statements regarding the periodic and perpetual inventory systems is correct? A. Inventory...
Which of the following statements regarding the periodic and perpetual inventory systems is correct? A. Inventory is updated after each sale under the periodic method B. Under the periodic method, the amount of inventory is not known until the end of the period when an inventory count is taken C. Inventory on hand is determined by a physical count only under the perpetual method D. The primary advantage of the periodic method is that it maintains detailed transaction-by-transaction records.
as soon as possible thx 0.058 Dupont Ltd uses a periodic inventory system has the following...
as soon as possible
thx
0.058 Dupont Ltd uses a periodic inventory system has the following Beginning Inventory Purchase Purchase Date July 1 10 20 Units 8,000 13,000 5,000 Unit Cost $11 12 13 if 9,000 units are on hand as at the end of July the cost of the ending inventory under First-In-First-Out (FIFO) method is Select one: a $ 100,000 b. $108,000 $113,000 d. $117.000 0.062 Montreal Furniture uses a periodic inventory system. During an accounting year many...
In a periodic inventory system, the cost of goods sold is: In a periodic inventory system,...
In a periodic inventory system, the cost of goods sold is:
In a periodic inventory system, the cost of goods sold is: Multiple Choice Recorded as sales transactions occur. Determined by a computation which is performed at year-end, after the taking of a complete physical inventory. Equal to the beginning inventory, plus purchases made during the period, less sales revenue for the period. O Determined by subtracting the balance in the Gross Profit account from the amount of net sales.
Which of the following statements is not correct? A. Even in a perpetual inventory system, a...
Which of the following statements is not correct? A. Even in a perpetual inventory system, a business must count inventory at least one a year. B. Restaurants and small retail stores often use the periodic inventory system. C. In a periodic inventory system, merchandise inventory and purchasing systems are integrated with the records for Accounts Receivable and Sales Revenue. D. In a perpetual inventory system, the "cash register" at the store is a computer terminal that records sales and updates...
Under the perpetual inventory system the Merchandise inventory account is continuously updated as purchases, sales, and...
Under the perpetual inventory system the Merchandise inventory account is continuously updated as purchases, sales, and relurns occur and under periodic inventory system the Merchandise inventory account slays as its beginning balance unti the physical inventory is recorded at the and of the accounting period. True False Under the perpetual inventory systerm, in addition to making the entry to record a sala, a company wouid: A. Debit Marchandise Inventory and credit Cost of Goods Sold B. Debit Cost of Goods...
Question 4 Which of the following statements is correct? The purchases account is used under both...
Question 4 Which of the following statements is correct? The purchases account is used under both the periodic and perpetual inventory systems. The perpetual inventory system continually updates the inventory, purchase discounts, and cost of goods sold accounts. Under the periodic inventory system, neither the cost of goods sold account nor the inventory account is computed on a daily basis. The perpetual inventory system requires a closing entry in order to determine cost of goods sold before cost of goods...
One difference between periodic and perpetual inventory systems is: Multiple Choice Cost of goods sold is...
One difference between periodic and perpetual inventory systems is: Multiple Choice Cost of goods sold is always significantly higher under a perpetual system. Cost of goods sold is not recorded under a perpetual system until the end of the period. Cost of goods sold is always significantly higher under a periodic system. Cost of goods sold is not recorded under a periodic system until the end of the period.
Practice Question 06 X Companies using a periodic inventory system take a physical inventory to determine...
Practice Question 06 X Companies using a periodic inventory system take a physical inventory to determine the inventory on hand at the balance sheet date, and to determine the cost of goods sold for the period. Companies using a periodic inventory system take a physical inventory for each of the following purposes except to determine the O cost of goods sold for the period. inventory on hand at the balance sheet date. O amount of inventory lost due to shoplifting...
Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account...
Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account titles and balances were drawn from Tippah's records for Year 2: beginning balance in inventory, $25,100; purchases, $307,000; purchase returns and allowances, $13,200; sales, $727,000; sales returns and allowances, $6,320; freight-in, $1,870; and operating expenses, $51,700. A physical count indicated that $25,000 of merchandise was on hand at the end of the accounting period. Required a. Prepare a schedule of cost of goods sold....
Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account...
Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account titles and balances were drawn from Tippah’s records for Year 2: beginning balance in inventory, $42,000; purchases, $128,000; purchase returns and allowances, $12,000; sales, $520,000; sales returns and allowances, $3,900; freight-in, $1,000; and operating expenses, $130,000. A physical count indicated that $26,000 of merchandise was on hand at the end of the accounting period. Required a. Prepare a schedule of cost of goods sold....
as soon as possible
thx
0.058 Dupont Ltd uses a periodic inventory system has the following Beginning Inventory Purchase Purchase Date July 1 10 20 Units 8,000 13,000 5,000 Unit Cost $11 12 13 if 9,000 units are on hand as at the end of July the cost of the ending inventory under First-In-First-Out (FIFO) method is Select one: a $ 100,000 b. $108,000 $113,000 d. $117.000 0.062 Montreal Furniture uses a periodic inventory system. During an accounting year many...
In a periodic inventory system, the cost of goods sold is:
In a periodic inventory system, the cost of goods sold is: Multiple Choice Recorded as sales transactions occur. Determined by a computation which is performed at year-end, after the taking of a complete physical inventory. Equal to the beginning inventory, plus purchases made during the period, less sales revenue for the period. O Determined by subtracting the balance in the Gross Profit account from the amount of net sales.
Under the perpetual inventory system the Merchandise inventory account is continuously updated as purchases, sales, and relurns occur and under periodic inventory system the Merchandise inventory account slays as its beginning balance unti the physical inventory is recorded at the and of the accounting period. True False Under the perpetual inventory systerm, in addition to making the entry to record a sala, a company wouid: A. Debit Marchandise Inventory and credit Cost of Goods Sold B. Debit Cost of Goods...
Practice Question 06 X Companies using a periodic inventory system take a physical inventory to determine the inventory on hand at the balance sheet date, and to determine the cost of goods sold for the period. Companies using a periodic inventory system take a physical inventory for each of the following purposes except to determine the O cost of goods sold for the period. inventory on hand at the balance sheet date. O amount of inventory lost due to shoplifting...
Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account titles and balances were drawn from Tippah's records for Year 2: beginning balance in inventory, $25,100; purchases, $307,000; purchase returns and allowances, $13,200; sales, $727,000; sales returns and allowances, $6,320; freight-in, $1,870; and operating expenses, $51,700. A physical count indicated that $25,000 of merchandise was on hand at the end of the accounting period. Required a. Prepare a schedule of cost of goods sold....
Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account titles and balances were drawn from Tippah’s records for Year 2: beginning balance in inventory, $42,000; purchases, $128,000; purchase returns and allowances, $12,000; sales, $520,000; sales returns and allowances, $3,900; freight-in, $1,000; and operating expenses, $130,000. A physical count indicated that $26,000 of merchandise was on hand at the end of the accounting period. Required a. Prepare a schedule of cost of goods sold....
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