Fabulous Furniture Uses a Periodic Inventory System

question 27

Multiple Choice

Fabulous Furniture uses a periodic inventory system. Many purchases and sales of goods occur during the financial year. For Fabulous Furniture, the balance in the general ledger inventory account:

• A) will usually be zero except at a balance sheet date.
• B) does not change until a stocktake is carried out.
• C) represents the goods on hand at any given point in time.
• D) reports the goods purchased since the beginning of the accounting period.

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