Which of the Following Statements Is Correct

question 9

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.

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Definitions:

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A process or theory in which companies are expected to conduct their business in an open and honest way to gain market acceptance and build a solid reputation.

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A United Nations initiative to encourage businesses worldwide to adopt sustainable and socially responsible policies and to report on their implementation.

Non-Profit Organization

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