Two Systems Are Used in Accounting for Inventory-Perpetual and Periodic

question 78

Multiple Choice

Two systems are used in accounting for inventory-perpetual and periodic. Which of the following statements is correct?

• A) In a periodic inventory system, cost of goods sold is developed from a comparison of beginning inventory and ending inventory only.
• B) In a perpetual inventory system, the inventory account is not changed for each purchase during the accounting period.
• C) In a perpetual inventory system, cost of goods sold is recorded at the time of each sale during the accounting period.
• D) In a periodic inventory system, the inventory account is increased for each purchase during the accounting period.

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