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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?

FINANCIAL ACCOUNTING
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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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.
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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