The Primary Difference Between a Periodic and a Perpetual Inventory

question 46

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:

African Slaves

People from the African continent forcibly taken and transported to other parts of the world primarily for free labor through the transatlantic slave trade.

Seventeenth Century

The period from January 1, 1601, to December 31, 1700, marking the 17th century in the Gregorian calendar, noted for significant cultural, scientific, and geographical explorations.

North American Colonies

Territories in North America that were claimed, settled, and governed by European powers prior to becoming independent nations.

West Central Africa

A region in Africa that includes countries like Angola, Congo (Republic of the Congo and Democratic Republic of the Congo), and Cameroon, known for its rich history and diverse cultures.