A Company Using the Periodic Inventory System Does Not Record

question 46

True/False

A company using the periodic inventory system does not record the increase in cost of goods sold and decrease in inventory at the time of each sale in the sales journal.

---

Definitions:

Operating Expenses

Costs associated with the operation of a business, such as rent, utilities, and payroll, that are not directly tied to the production of goods or services.

Loss on Disposal

The financial loss recognized when the selling price of an asset is less than its carrying amount on the balance sheet.

Operating Expenses

Expenses incurred in the normal operations of a business, including costs such as rent, salaries, and utilities, but not including cost of goods sold.

Operating Revenues

Income generated from a company's primary business activities, excluding income from investments or secondary operations.