The Primary Difference Between a Periodic and Perpetual Inventory System

question 165

Multiple Choice

The primary difference between a periodic and perpetual inventory system is that a

• A) periodic system determines the inventory on hand only at the end of the accounting period
• B) periodic system keeps a record showing the inventory on hand at all times
• C) periodic system provides an easy means to determine inventory shrinkage
• D) periodic system records the cost of the sale on the date the sale is made

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Definitions:

Scholastic Competence

The ability or effectiveness of an individual in academic skills and tasks, often evaluated through grades and academic achievement.

Perspective Taking

The cognitive capacity to consider the world from another individual's viewpoint.

Robert Selman

A psychologist known for his work on the development of social cognition and interpersonal understanding in children.

Erik Erikson

A developmental psychologist and psychoanalyst known for his theory on the psychosocial development of human beings, which outlines eight stages from infancy to adulthood with distinct challenges and tasks.