College Accounting, Chapters 1-9 (New in Accounting from Heintz and Parry)
College Accounting, Chapters 1-9 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666184
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
Question
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Chapter 27, Problem 1TF
To determine

Describe whether the given statement is true or false.

Expert Solution & Answer
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Answer to Problem 1TF

False.

Explanation of Solution

Perpetual inventory system: The method or system of maintaining, recording, and adjusting the inventory perpetually throughout the year, is referred to as perpetual inventory system.

Periodic inventory system: The method or system of recording the transactions related to inventory occasionally or periodically are referred to as periodic inventory system.

In this case, Company T uses a perpetual inventory system to record its inventories (finished goods, work in process, and materials).

Conclusion

Therefore, the given statement “Company T uses a periodic inventory system” is false.

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Chapter 27 Solutions

College Accounting, Chapters 1-9 (New in Accounting from Heintz and Parry)

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