A Company Uses a Periodic Inventory System

question 16

True/False

A company uses a periodic inventory system.If the ending inventory is understated,the error will affect only the current accounting period.

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Definitions:

Buyers

Individuals or entities that purchase goods or services for use or consumption.

Tax

A tax is a compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Price

The amount of money expected, required, or given in payment for something.

Equilibrium Price

The price at which the supply of an item matches its demand, resulting in market stability.