Indicate whether each of the following statements is true or false.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
F.23.
Transcribed Image Text:Indicate whether each of the following statements is true or false.
a) The perpetual inventory system recognizes inventory transactions as they occur.
b) The periodic inventory system recognizes sales revenue at the end of the accounting period.
c)
A physical count of inventory at the end of each accounting period is necessary for the periodic inventory system, as
well as for the perpetual inventory system.
d)
A periodic inventory system requires more detailed record keeping than a perpetual inventory system.
e) With a periodic inventory system, cost of goods sold is not determined until the end of the accounting period.
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