Which One of the Following Statements Concerning the Periodic and Perpetual

question 19

Multiple Choice

Which one of the following statements concerning the periodic and perpetual inventory systems is true?

• A) The periodic system uses a purchases account.
• B) None of the accounting entries vary between the two systems.
• C) Inventory controls are only needed for the periodic inventory systems.
• D) Due to advances in computers, many businesses recently have begun to use the periodic inventory system.

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Definitions:

Employee Morale

The overall outlook, satisfaction, and confidence that employees feel towards their workplace.

Incentive Plan

A program designed to motivate and reward employees for meeting or exceeding performance and productivity targets.

Company's Success

A company's success is measured by its ability to achieve its goals, financial prosperity, and the satisfaction of its stakeholders.

Exercise Price

The specified price at which an option contract can be executed, commonly used in the context of stock option plans.