Asked by suzette martinez on Jun 18, 2024

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Under this system, only revenue is recorded when sales are made.

A) Perpetual
B) Periodic

Inventory System

A method for keeping track of the quantity, location, and status of goods a company has in stock.

Revenue Recorded

The process of documenting income earned by a business during a specific period, usually upon the delivery of goods or services.

  • Comprehend the distinctions and applications of the perpetual and periodic inventory systems.
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Verified Answer

XH
Xinen HuangJun 22, 2024
Final Answer :
B
Explanation :
The description matches the Periodic inventory system, where revenue is recorded only at the end of the accounting period, and the cost of goods sold is calculated based on a physical count of inventory. In contrast, the Perpetual inventory system updates inventory and cost of goods sold in real-time with every transaction.