In Comparing a Perpetual Inventory System with a Periodic Inventory

question 57

Multiple Choice

In comparing a perpetual inventory system with a periodic inventory system,which of the following statements is not correct?

• A)Most large companies use perpetual inventory systems.
• B)A periodic system does not include an inventory subsidiary ledger.
• C)The perpetual method is easier to apply in a manual accounting system.
• D)Regardless of the system in use,most businesses take a physical inventory at least once a year.

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Definitions:

Maintenance Strategy

A planned approach for conducting upkeep and repairs of equipment, infrastructure, or systems to ensure their optimal working condition and longevity.

Breakdown Maintenance

Reactive maintenance performed after a machine or system fails in order to restore it to operating condition.