Under the Periodic Inventory System, a Physical Inventory Is Taken

question 60

True/False

Under the periodic inventory system, a physical inventory is taken to determine the cost of the inventory on hand and the cost of the goods sold.

---

Definitions:

Cash Dividends

are payments made by a company to its shareholders out of its profits or reserves, representing a portion of the company's earnings.

Indirect Method

A way to prepare a cash flow statement where net income is adjusted for changes in balance sheet accounts to calculate cash flow from operating activities.

Net Cash Provided

Net cash provided is the amount of cash generated by a company's operating, investing, and financing activities within a specific period.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, representing the asset's consumption and wear and tear.