Which of the Following Does NOT Correctly Describe a Periodic

question 44

Multiple Choice

Which of the following does NOT correctly describe a periodic inventory system?

• A) Cost of goods sold is calculated every time a sale is made.
• B) Cost of goods sold is a residual amount.
• C) Assuming a FIFO cost flow, cost of goods sold would equal that calculated by the perpetual system.
• D) Inventory and cost of goods sold must be updated at the end of the period.

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Definitions:

Sociology

The study of society, social institutions, and social relationships.

Sociological Compass

A conceptual tool used in sociology to navigate and understand the social world by examining the interplay of individual actions and societal forces.

Society

A collection of people engaged in continuous social interaction, or a substantial social group occupying the same geographical or social area, commonly under the same political authority and prevalent cultural norms.

Sociological Perspective

A viewpoint that looks at behavior of groups, not individuals, focusing on patterns and how social forces affect behavior.