Under the Periodic Inventory System

question 100

Multiple Choice

Under the periodic inventory system:

• A)inventory must be counted at the beginning and end of each accounting period.
• B)inventory must only be counted at the end of each accounting period.(The ending inventory from the previous period can be used as the beginning inventory for the next period.)
• C)inventory does not have to be counted.(It can be taken from the accounting records.)
• D)inventory levels must be counted every day.

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Definitions:

Associate

In a business context, this usually refers to a person or entity that is connected with another as a partner, colleague, or member of an enterprise.

Subsidiary

A company that is completely or partially owned and controlled by another company, known as the parent company.

Income from Associates

Earnings generated from investments in affiliate or associate companies.

Dividend Income

Earnings distributed to shareholders from the profits of a company, acquired through the ownership of its shares.