Which of the following statements appropriately describes attributes of perpetual and periodic inventory systems?
Which of the following statements appropriately describes attributes of perpetual and periodic inventory systems?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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
Transcribed Image Text:Which of the following statements appropriately describes attributes of
perpetual and periodic inventory systems?
O a. Historically, a perpetual inventory system is less costly to maintain then a periodic one.
O b. Inventory shrinkage is just as easily determined under both the perpetual and periodic
inventory system.
O c. The perpetual inventory system computes cost of sales as a residual amount.
O d. If a company has a December 31 year end, and operated under the periodic inventory
system, it is possible that the balance in the inventory acCount on December 29 would
remain unchanged from its January 1 balance, even though numerdus sales have
occurred during the year.
O e. Cost of sales can be determined at any time by both the perpetual and periodic
inventory system without the need of a physical inventory count.
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