Which of the Following Does NOT Correctly Describe a Periodic

question 37

Multiple Choice

Which of the following does NOT correctly describe a periodic inventory system?

• A)Cost of goods sold is calculated every time a sale is made.
• B)Cost of goods sold is a residual amount.
• C)Assuming a FIFO cost flow, cost of goods sold would equal those that calculated by the perpetual system.
• D)Inventory and cost of goods sold must be updated at the end of the period.

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Definitions:

Complaining Shareholders

Shareholders who express dissatisfaction with management or company actions, often leading to lawsuits or demands for changes.

Class Action

A legal proceeding in which one or more plaintiffs file a lawsuit on behalf of a larger group of people who are similarly affected.

Wrongful Act

An act that is illegal or immoral, leading to legal liability or moral condemnation.

Similarly Affected

A phrase used to describe individuals or entities that experience the same or similar impacts from an event or action.