When the merchandise inventory account provides a running balance of the goods on hand, which inventory system is being used? a.Perpetual inventory system b.Periodic inventory system c.Either the periodic or the perpetual inventory system, since both keep a running balance in the merchandise inventory account d.Neither the periodic nor the perpetual inventory system, since both systems do not keep a running balance in the merchandise inventory account

Q: Which of the following accounts does not appear in the general ledger of a company using the…

A: Under periodic inventory system , day to day in and out of inventory is not recorded . Closing…

Q: O A. there is no need to take a physical count of inventory O B. beginning Merchandise Inventory,…

A: Answer:- B. beginning Merchandise Inventory, Purchases, and Freight In accounts are closed via the…

Q: Under a perpetual inventory system, what are the four inventory costing methods and how does each…

A: The four inventory costing methods are: Specific identification FIFO (First-In, First-Out), LIFO…

Q: hich of the following statements relative to book (perpetual) inventory systems Is false? a. Use of…

A: Answer: Book inventory systems is defined as the inventory system which records inventory based on…

Q: Under which inventory system would a company NOT be able to specifically determine the amount of…

A: A process for monitoring stocks, procurement, and sales along the entire supply chain is known as an…

Q: No entry is made at the time of a sale to the Cost of Goods Sold Account or the Inventory Account…

A: There are two type of inventory system follows by the organizations i.e. Periodic inventory system…

Q: The entry to record inventory shrinkage under a perpetual inventory system would include a debit to:…

A: Explanation: When There is Inventory shrinkage Under the perpetual inventory system The following…

Q: The elimination entry under the perpetual inventory system for intercompany sales  is a debit to…

A: SOLUTION- THE ELIMINATION ENTRY REMOVES IC SALES FROM THE CONS. UNIT (VENDOR) AND IC PURCHASE FROM…

Q: When using a perpetual inventory system, the journal entry to record the cost of goods sold is:…

A: Perpetual inventory system reports the inventory units on regular basis.

Q: Cost of goods sold is determined only at the end of the accounting period in a perpetual inventory…

A: Periodic inventory system :The periodic inventory system is a method of ascertaining inventory by…

Q: In the Perpetual/Periodic Inventory System what are the merchandise inventory and Income summary?…

A: Perpetual inventory: Under perpetual inventory system each transaction for purchase of inventory,…

Q: A business using the perpetual inventory system, with its detailed subsidiary records, does not need…

A: The company can maintain its records of inventory on basis of two different systems: 1. Perpetual…

Q: Under a perpetual inventory system, acquisition of merchandise for resale is debited to the…

A: Inventory accountExplanation:Under a perpetual inventory system, acquisition of merchandise for…

Q: 31) What is the Adjusting journal entry to record when merchandise inventory is overstated in the…

A: Merchandise inventory is a form of asset for the company. It should be debited in case of increase…

Q: An account used in the perpetual inventory system that is not used in the periodi inventory system…

A: The main distinction between inventory systems is the goods inventory account.Periodic inventory…

Q: 4. Prepare journal entries to record the purchase and sale transactions, as well as the cost of…

A: Inventory Valuation Method - Inventory valuation method includes FIFO, LIFO, and Weighted Average…

Q: In a periodic inventory system, the cost of merchandise purchased includes the cost of

A: Statement is TRUE  In a periodic inventory system, the cost of merchandise purchased includes the…

Q: Under perpetual inventory system, the journal entry to record cost of sales of merchandise items is:

A: In accounting there are two main inventory systems – perpetual inventory system and periodic…

Q: Perpetual versus Periodic Inventory Systems Graham Company is trying to select an inventory system.…

A: Periodic and Perpetual inventory systems are two important systems of cost accounting that are used…

Q: Which of the following statements is true about the periodic inventory system? Question 2Select one:…

A: Inventory valuation is referred to as that method which helps in assigning a monetary value to the…

Q: What is the main distinction between perpetual and periodic inventory systems? Which type of system…

A: Explain the main distinction between perpetual inventory system and periodic inventory system and to…

Q: Which of the following needs an adjustment to the accounts receivable account of ABC Company? a.…

A: Accounts receivable are created by an organisation when it records sales on credit. The accounts…

Q: True or False

A: Given statement is: Under the periodic inventory system, the merchandise inventory account is not…

Q: The Cloud Company employs a perpetual inventory system and the McKenzie Corporation uses a…

A: Definition:   Perpetual and periodic inventory system: In merchandise business, there are two types…

Q: When merchandise that was sold is returned, a credit to sales returns and allowances is made by the…

A: As per perpetual inventory system, inventory records are updated after every transaction.  When…

Q: Under the perpetual inventory system, in addition to making the entry to record a sale, a company…

A: Under perpetual inventory system, the decrease in inventory is also recorded every time of sale.

Q: A cost accounting system uses which of the following inventory systems? a.perpetual system…

A: Inventories are assets that are sold, purchased, and manufactured in an organization as a core…

Q: oods purchased and held for resale are commonly known as _____. perpetual inventoryperiodic…

A: Periodic Inventory System: The periodic inventory system records and updates the inventory at the…

Q: What is a consigned inventory? Goods that are shipped and title transfer to the consignee. Goods…

A: Consigned inventory refers to items that are held and sold on behalf of another company. Consigned…

Q: 10.Which of the following statement(s) is (are) true about the perpetual system. A. Physical count…

A: Before answering we must know the meaning of the Perpetual System. Meaning of Perpetual System: An…

Q: Which of the following statements is correct? O Cost of goods sold computed under a periodic system…

A: Lets understand the basics.There are two inventory methods are followed which calculating inventory…

Q: Required: 1. Complete the…

A: "Since you have posted multiple questions with multiple sub parts,we will provide the solution only…

Q: When using the perpetual system for inventory, the journal entry to record a purchase of inventory…

A: The objective of the question is to identify the correct journal entry to record a purchase of…

Q: Physical counts of inventory: O a. Must be taken at least once a month. O b. Are not necessary under…

A: A physical count of inventory means having an actual count of inventory despite maintaining…

Q: Perpetual inventory valuation system does not require....   a. physical count or measurement of…

A: The question is multiple choice question Required  Choose the Correct Option.

Q: Highlight the differences in the closing process when using the periodic inventory system rather…

A: Definition:

Q: Requirement a. What are the accounting requirements for a correct sales​ cutoff?     A. A shipment…

A: Revenue shall be recognition according to accounting standards. Following is the condition to…

Q: Multiple choice question In a credit sale of inventory using the perpetual inventory method, which…

A: Perpetual inventory also known as continuous inventory is an inventory system which records the…

Q: Which of the following statements is correct concerning the operati merchandiser who chooses to use…

A: A periodic inventory system is that system in which inventory is counted on a physical basis at the…

Q: In a periodic inventory system, cost of goods sold is not recorded as each sale occurs. Group…

A: The income statement is prepared to estimate the profitability of the business for the current…

Q: Is it necessary to do a physical count of inventory if the company is using a perpetual system?  Why…

A: The perpetual inventory system is one of the approaches or systems used in inventory management…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.