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In Australia, Where Most Accounting Is Computerised, the Use of the Periodic

question 56

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In Australia, where most accounting is computerised, the use of the periodic inventory system is declining. Which of the following businesses is still most likely to use the periodic approach to accounting for inventory?


Definitions:

Fair Value

An estimate of the price at which an asset would be bought or sold in a current transaction between willing parties, not under compulsion.

Market Price

The prevailing market rate at which transactions for assets or services are conducted.

Investment Sold

The act of divesting an asset or security, converting an investment back into cash or its cash equivalent.

Equity Investment Transactions

Financial activities involving the buying and selling of stock or ownership stakes in a company.

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