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