The Primary Difference Between a Periodic and a Perpetual Inventory

question 125

Multiple Choice

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

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

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Definitions:

Misunderstandings

Situations where there is a failure to understand something correctly, leading to errors or conflicts.

Equality

The state of being equal, especially in status, rights, and opportunities.

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A principle valuing the freedom and independence of the individual, often in contrast to collective or state control.

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Proficiency in grasping, communicating, and successfully relating to people from various cultures.