In a Periodic Inventory System, What Kind of Entry Is

question 12

Multiple Choice

In a periodic inventory system, what kind of entry is necessary to record the cost of sales?

• A)A closing entry
• B)A reversing entry
• C)An adjusting entry
• D)A transactional entry

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Definitions:

Obsolete Goods

Items that are no longer useful or saleable due to changes in technology, style, or customer preferences, often leading to inventory write-offs.

Original Cost

The initial cost of acquiring an asset or service, including all expenses related to the purchase.

Internal Control

Processes and procedures implemented by a company to safeguard its assets, enhance the reliability of its accounting records, promote efficient operations, and ensure compliance with laws and regulations.

Physical Count

A physical count involves manually counting the actual inventory to verify accuracy against inventory records, often used for audit purposes or to correct discrepancies.