When using special journals for recording and posting transactions, it does not matter if it is a perpetual inventory or periodicinventory system.The two are completely different.They are exactly the same processes and accounts.It is not possible to identify the type of inventory system being used from the special journal.O They are essentially the same with two exceptions 1) relating to account titles used and 2) the need under one for anadditional column for COGS.

The perpetual inventory system is the inventory valuation system that counts the inventory on a…

Answered: When using special journals for…

When using special journals for recording and posting transactions, it does not matter if it is a perpetual inventory or periodic inventory system.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

When using special journals for recording and posting transactions, it does not matter if it is a perpetual inventory or periodic
inventory system.
The two are completely different.
They are exactly the same processes and accounts.
It is not possible to identify the type of inventory system being used from the special journal.
O They are essentially the same with two exceptions 1) relating to account titles used and 2) the need under one for an
additional column for COGS.

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