The Periodic and the Perpetual Inventory Systems Are Two Methods

question 243

Essay

The periodic and the perpetual inventory systems are two methods that companies use to account for inventories. Briefly describe the major features of each system and explain why a physical inventory is necessary under both systems.

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Definitions:

Reasonable Apprehension

A justified fear or expectation based on objective circumstances or evidence.

Assault

A civil wrong that occurs when one person intentionally and voluntarily places another in fear or apprehension of an immediate, offensive physical harm. Assault does not require actual contact.

Private Nuisance

A nuisance that affects only a single individual or a very limited number of individuals.

Strict-Liability Tort

A civil wrong that occurs when a defendant takes an action that is inherently dangerous and cannot ever be undertaken safely, no matter what precautions the defendant takes. The defendant is liable for the plaintiff’s damages without any requirement that the plaintiff prove that the defendant was negligent.