Which of the Following Statements Is Correct

question 110

Multiple Choice

Which of the following statements is correct?

• A) Under a periodic system, the inventory account is only updated once per period.
• B) Under a perpetual system, the inventory account is only updated once per period.
• C) Cost of goods sold computed under a periodic system would be higher than under a perpetual system.
• D) The value of inventory computed under a periodic system would be lower than under a perpetual system.

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