Companies with Periodic Inventory Systems Often Use Techniques Such as the Gross

question 4

Multiple Choice

Companies with periodic inventory systems often use techniques such as the gross profit method and the retail method to:

• A)Prepare interim financial statements without taking a complete physical inventory.
• B)Increase gross profit.
• C)Value inventory at its sales price instead of its cost.
• D)Reduce taxable income during a period of rising prices.