Which of the Following Statements Is Correct

question 3

Multiple Choice

Which of the following statements is correct?

• A) the periodic method of accounting for inventory will always result in a higher closing inventory balance than the perpetual method;
• B) the periodic method of accounting for inventory will always result in a lower closing inventory balance than the perpetual method;
• C) closing inventory will always be the same under the periodic and perpetual methods;
• D) the relationship between the closing inventory balance under the periodic and perpetual methods will depend on whether the FIFO or weighted average method is used to value inventory.