The Primary Difference Between the Periodic and Perpetual Inventory Systems

question 240

Multiple Choice

The primary difference between the periodic and perpetual inventory systems is that a

• A) periodic system determines the inventory on hand only at the end of the accounting period
• B) periodic system keeps a record showing the inventory on hand at all times
• C) periodic system provides an easy means to determine inventory shrinkage
• D) periodic system records the cost of the sale on the date the sale is made

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Definitions:

Isotope

Variants of a particular chemical element that differ in neutron number, and consequently in nucleon number, but have the same number of protons.

Protons

Positively charged particles located in the nucleus of an atom, contributing to the atom's mass and charge.

Isotope

Atoms of the same element with the same number of protons but different numbers of neutrons, leading to different atomic masses.

Element

An element is a substance consisting of atoms which all have the same number of protons, classically considered the simplest substances that cannot be broken down using chemical reactions.