A Periodic Inventory System Does Not Continually Modify Inventory Amounts,but

question 30

True/False

A periodic inventory system does not continually modify inventory amounts,but instead adjusts for purchases and sales of inventory at the end of the reporting period based on a physical count of inventory on hand.

---

Definitions:

Multiple-Step Income Statement

An income statement that separates operating items from non-operating items and calculates net income in several steps or stages.

Trade Discount

A reduction in the list price granted by a seller to a buyer, usually based on volume purchased or to maintain a business relationship.

Selling Expenses

Costs incurred directly and indirectly from the sale of goods or services, such as advertising, shipping, and sales staff salaries.

Perpetual Inventory System

An inventory management system where inventory levels are updated in real-time with each sale or purchase.