In a Periodic Inventory System

question 51

Multiple Choice

In a periodic inventory system:

• A) The company records the cost of new merchandise in the permanent Purchases account.
• B) The cost of merchandise on hand is determined by relating the quantities on hand to records showing each item's original cost.
• C) The inventory value is not based on a physical count.
• D) A continuous record of the amount of inventory on hand is maintained.
• E) None of these answers apply.

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