Which of the Following Statements Relating to the Periodic Inventory

question 37

Multiple Choice

Which of the following statements relating to the periodic inventory system is incorrect?

• A) Inventory purchases are recorded in the Purchases account.
• B) The balance in the Inventory account represents the cost of the inventory on hand at the beginning of the period.
• C) The Inventory account is classified as a non-current asset.
• D) A stocktake must be performed to determine the ending inventory balance.

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