Which of the following statements about a periodic inventory system is true? a. The periodic system provides better control over inventories than a perpetual system. b. Companies continuously maintain detailed records of the cost of each inventory purchase and sale. O c. The increased use of computerized systems has increased the use of the periodic system. d. Companies determine the cost of goods sold only at the end of the accounting period.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Q16
Which of the following statements about a
periodic inventory system is true?
a. The periodic system provides better
control over inventories than a
perpetual system.
b. Companies continuously maintain
detailed records of the cost of each
inventory purchase and sale.
c. The increased use of computerized
systems has increased the use of the
periodic system.
d. Companies determine the cost of
goods sold only at the end of the
accounting period.
Transcribed Image Text:Which of the following statements about a periodic inventory system is true? a. The periodic system provides better control over inventories than a perpetual system. b. Companies continuously maintain detailed records of the cost of each inventory purchase and sale. c. The increased use of computerized systems has increased the use of the periodic system. d. Companies determine the cost of goods sold only at the end of the accounting period.
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