Which of the Following Accounts Is Used in the Periodic

question 114

Multiple Choice

Which of the following accounts is used in the periodic inventory system but not used in the perpetual inventory system?

• A)Merchandise Inventory
• B)Sales
• C)Sales Returns and Allowances
• D)Accounts Payable
• E)Purchases

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Definitions:

LIFO Periodic Inventory Method

An inventory valuation method where the last items purchased are the first items considered sold during a given period, calculated periodically.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated before any adjustments for cost of sales.

Perpetual Inventory System

A bookkeeping approach that instantly logs the sale or acquisition of stock using computerized point-of-sale systems and enterprise asset management programs.

FIFO

FIFO, or First-In, First-Out, is an inventory valuation method where goods produced or acquired first are sold, used, or disposed of first.