The Primary Difference Between a Periodic and Perpetual Inventory System

question 186

Multiple Choice

The primary difference between a periodic and perpetual inventory system is that a periodic system

• A)keeps a record showing the inventory on hand at all time.
• B)provides better control over inventories.
• C)records the cost of the sale on the date the sale is made.
• D)determines the inventory on hand only at the end of the accounting period.

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Definitions:

Clean Air

Air that is free from pollutants and contaminants, ensuring environmental quality and public health.

Consumption

The use of goods and services by households or individuals for personal satisfaction or to fulfill their needs.

Artificially Excludable

Describes goods or services from which individuals can be prevented from using unless they comply with certain conditions, despite there being no natural reason for exclusion.

License Fee

A charge paid for obtaining legal permission to carry out a particular activity or to use a particular piece of intellectual property.