Asked by Tracy Thich on Jun 16, 2024
Verified
A periodic inventory system requires a detailed inventory record of inventory items.
Periodic Inventory System
An inventory accounting system where stock levels and cost of goods sold are determined at the end of an accounting period through a physical count.
Inventory Record
Documentation that tracks the quantity, location, and status of products throughout the supply chain from acquisition to sale.
Inventory Items
These are goods and materials held by a business for the purpose of resale or as inputs in the production process.
- Familiarize yourself with the constant and cyclic inventory frameworks and their impact on financial reporting.
Verified Answer
KS
Karanpreet SinghJun 17, 2024
Final Answer :
False
Explanation :
A periodic inventory system does not maintain a day-to-day record of inventory items; it calculates inventory levels at specific intervals, typically at the end of an accounting period.
Learning Objectives
- Familiarize yourself with the constant and cyclic inventory frameworks and their impact on financial reporting.