Choose the Correct Statement Concerning Periodic and Perpetual Inventory Systems

question 149

Multiple Choice

Choose the correct statement concerning periodic and perpetual inventory systems.

• A) Only the periodic system requires a physical count once per year
• B) The balance in the inventory account is known twice per fiscal year under the periodic system
• C) Both systems provide a means of estimating shrinkage loss
• D) Only the periodic system ever requires an adjusting entry at the end of each year after the physical count

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