What Is the Major Difference Between a Periodic and Perpetual

question 18

Multiple Choice

What is the major difference between a periodic and perpetual inventory system?

• A) Under the periodic inventory system, the purchase of inventory will be debited to the Purchases account
• B) Under the periodic inventory system, no journal entry is recorded at the time of the sale of inventory for the cost of the inventory.
• C) Under the periodic inventory system, all adjustments such as purchases returns and allowances and discounts are reconciled at the end of the month.
• D) All are correct.

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Definitions:

Refined Version

A version that has been improved or made clearer for better understanding or effectiveness.

Hedonistic Calculus

A method proposed by utilitarian philosophers for calculating the moral rightness of an action based on the net pain or pleasure it produces.

Elements

Fundamental components or essential parts that make up a larger system or concept.

Ethical Action

Behavior or conduct that is right, good, and beneficial to both the individual and society, based on ethical principles.