Which of the following is a characteristic of a periodic inventory system?
A) The system does not maintain a continuous record of the quantities of inventory on hand or inventory sold
B) The system reports how much inventory is on hand at all times.
C) The computer tracks inventory upon a sale, and the cost of goods and inventory are immediately updated.
D) Purchases of inventory are recorded to the inventory account.

Question

Quizplus · Accepted Answer

A periodic inventory system does not maintain a continuous record of inventory levels. Instead, it periodically (often at the end of an accounting period) counts the inventory to determine the cost of goods sold and the remaining inventory level.

Which of the Following Is a Characteristic of a Periodic