The Primary Difference Between a Periodic and Perpetual Inventory System

question 165

Multiple Choice

The primary difference between a periodic and perpetual inventory system 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

Interpret the impact of net income or net loss on financial statements from an end-of-period spreadsheet.

Describe and prepare a classified balance sheet.

Understand and execute closing entries in the accounting cycle.

Understand and perform the process of journalizing reversing entries and their impact on financial statements.

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Definitions:

Self-Help

A strategy or support system, often involving books, groups, or online resources, that individuals use to try to solve personal problems or achieve personal growth without the direct supervision of professionals.

Remedial Model

A strategy or approach focused on correcting or improving deficiencies in knowledge, skills, or behavior.

Social Goals Model

A conceptual framework that explains how individuals’ social goals influence their behavior within a group.

Reciprocal Model

A theory or method where two or more elements influence each other in a mutual or cyclical manner.