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.

---

Definitions:

External Causes

Factors outside of an individual's or organization's control that can impact outcomes or performance.

Company Management

The process of directing and controlling a business or organization through the making and implementation of decisions.

Fast-growth Firms

Companies that experience rapid expansion in terms of revenue, profitability, or market share over a short period.

Viable Opportunities

Opportunities that present a realistic and achievable path for growth, development, or profit for a business or individual.