What Is the Chief Advantage of the Periodic System

question 10

Multiple Choice

What is the chief advantage of the periodic system?

• A)Efficiency and ease of recording
• B)Immediate feedback on the inventory on hand at any time during the period
• C)Timely discovery of losses due to theft
• D)Better control over inventory

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Definitions:

Sales

The total amount of goods or services sold by a company during a specific period.

Trend Balance Sheet

A financial statement that shows how the assets, liabilities, and equities of a company have changed over a period of time.

Balance Sheet Item

An individual entry, such as assets, liabilities, or equity, that appears on the balance sheet, detailing a company's financial position at a specific point in time.

Total Assets

The sum of all resources owned by an entity, reflected on its balance sheet.