Which Statement Is Not Correct About the Periodic Inventory System

question 104

Multiple Choice

Which statement is not correct about the periodic inventory system for inventory management?

• A)The periodic inventory system keeps continuous information about the amount of inventory on hand.
• B)The cost of goods sold is a calculated number under the periodic inventory system.
• C)Under both the periodic and perpetual systems, the final amounts reported in financial statements are the same.
• D)The perpetual inventory system provides more information to allow an enterprise to better manage its inventories.

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Definitions:

Pupil

The opening in the center of the iris of the eye, through which light enters the eye.

Photoreceptor Cells

Specialized neurons located in the retina that are capable of converting light into signals that can be interpreted by the brain as vision.

Innermost Tunic

The deepest layer of a structure, often referring to the inner layer of an organ or tissue, such as the eye or blood vessels.

Mechanical Deficiency

A state or condition resulting from the inadequate physical functioning of a structure or mechanism.