Which statement is correct for about inventory systems?
A)The periodic inventory system provides more information to allow an enterprise to better manage its inventories.
B)Cost of goods sold is a not a calculated number under the periodic inventory system.
C)The final amounts reported in statements are the same under both the periodic and perpetual systems.
D)The periodic inventory system continuously updates information about the amount of inventory on hand.

Question

Quizplus · Accepted Answer

The final amounts reported in financial statements, such as the balance sheet and income statement, are the same under both the periodic and perpetual inventory systems. The difference between these systems lies in the timing and frequency of inventory updates and cost of goods sold calculations, not in the final reported amounts of inventory or cost of goods sold.

Which Statement Is Correct for About Inventory Systems