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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Definitions:

Hard Drive

A sealed data storage medium on which information is stored. Also called a hard disk.

Virtual Memory

A method of simulating extra memory by using the hard disk space as if it were RAM.

Motherboard RAM

Refers to the Random Access Memory slots situated on the motherboard where memory modules are inserted to provide the system's working memory.

SPD Device

Surge Protection Device, a device designed to protect electrical equipment from voltage spikes by blocking or shorting to ground undesired voltages.