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:

Social Processes

The patterns of growth and change in a society over time, which influence and are influenced by human behavior.

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The role or activity that something is expected to perform within a particular context.

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The results or outcomes of actions that may influence future events or behaviors.

Symbolic

Serving as a symbol or representing something beyond its literal sense.