When a Company Uses the Periodic Inventory System in Accounting

question 39

Multiple Choice

When a company uses the periodic inventory system in accounting for its merchandise inventory, which of the following is true?

• A) Purchases are recorded in the cost of goods sold account.
• B) The inventory account is updated after each sale.
• C) Cost of goods sold is computed at the end of the accounting periods rather than at each sale.
• D) The inventory account is updated throughout the year as purchases are made.

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Definitions:

Culture

The shared values, beliefs, behaviors, and symbols within a group of people or organization, shaping its social structure and identity.

Execution

The process of carrying out a plan, order, or course of action to achieve a specific outcome.

Strategy

An organization’s long-term course of action designed to deliver a unique customer experience while achieving its goals.

Leadership

The ability to guide, direct, or influence people toward the achievement of a goal or an objective.