Asked by Rogelio De Santiago on May 01, 2024
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Inventory system that updates the inventory account only at the end of the accounting period based on a physical count of inventory on hand.
A)Credit terms
B)FOB destination
C)FOB shipping point
D)Periodic inventory system
E)Perpetual inventory system
F)Inventory shrinkage
G)Single-step income statement
H)Multiple-step income statement
Periodic Inventory System
A method of inventory valuation in which physical inventory counts are conducted at specific intervals to determine cost of goods sold and ending inventory levels.
Physical Count
The process of manually counting and verifying the quantities of physical inventory in a business.
Inventory on Hand
The total quantity of goods or materials a business has in its possession, ready for sale or production.
- Acquire knowledge on the functionality of the periodic inventory system in documenting transactions.
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Learning Objectives
- Acquire knowledge on the functionality of the periodic inventory system in documenting transactions.
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