Under the Periodic Inventory System,the Amount for Inventory on Hand

question 170

True/False

Under the periodic inventory system,the amount for inventory on hand is accurate only on the balance sheet date.

---

Definitions:

Purchase Requisition

An official request form used within organizations to propose the purchase of specific goods or services.

Purchase Demand

The quantity of goods or services that consumers are willing and able to buy at a given price within a specific time period.

Perpetual Inventory System

An accounting approach that continuously updates inventory records after each transaction, providing a real-time view of inventory levels.

Liability Credited

A credit entry in accounting representing an increase in liabilities, reflecting that a company has received something of value for which it must pay in the future.