Which of the Following Statements About a Periodic Inventory System

question 119

Multiple Choice

Which of the following statements about a periodic inventory system is not correct?

• A)These systems are used primarily by small businesses with manual accounting systems.
• B)The system does not include an up-to-date inventory ledger.
• C)The balance in the Inventory account remains unchanged until the end of the period.
• D)The Cost of Goods Sold account is updated as sales transactions occur.

---

Definitions:

Civil Law

A system of law derived from Roman law, emphasizing written statutes and codes as the primary source of legal authority.

Criminal Law

The body of law that pertains to crimes, prescribing conduct perceived as threatening, harmful, or otherwise endangering to the property, health, safety, and moral welfare of people.

Burdens of Proof

The obligation to prove allegations presented in a legal dispute.

Substantive Law

The part of law that governs the rights and duties of individuals and collective bodies, as opposed to procedural law which governs how those rights and duties are enforced.