A Company Using the Periodic Inventory System Must Total the Selling

question 211

True/False

A company using the periodic inventory system must total the selling prices of the units on hand at the end of the period to value the ending inventory.

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Definitions:

Transferred

The act of moving assets, funds, or rights from one account, location, or ownership to another.

Journals

Recorded chronological entries that detail all the financial transactions of a business, used as the initial place of record.

Debit

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.

Increase

An upward movement in quantity, value, or some measure of performance.