When using a periodic inventory system, which statement concerning the computation of cost of goods sold is correct?
A)The amount of ending inventory is determined on the last day of the accounting period.
B)Cost of goods available for sale includes net purchases plus the ending inventory.
C)Purchases represent cash paid for purchases during the accounting period.
D)Freight-in is ignored.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the ending inventory is determined at the end of the accounting period to calculate the cost of goods sold.

When Using a Periodic Inventory System, Which Statement Concerning the Computation