A(n) __________ requires estimating inventory balances during the year for interim financial statements and shutting down operations to count all inventory items at the end of the year.
A)periodic inventory system
B)inventory control account
C)perpetual inventory system
D)inventory cost method

Question

Quizplus · Accepted Answer

A periodic inventory system requires a company to make estimates of inventory balances throughout the year, and a complete physical count of inventory at the end of the year. A perpetual inventory system provides a continuous record of purchases, issues and inventory balances. The inventory balances are verified with periodic counts of selected inventory items throughout the year.

A(n) __________ Requires Estimating Inventory Balances During the Year for Interim