An account used in the periodic inventory system that is not used in the perpetual inventory system is
A) Merchandise Inventory
B) Sales
C) Sales Returns and Allowances
D) Accounts Payable
E) Purchases

Question

Quizplus · Accepted Answer

The periodic inventory system relies on physical counts of inventory to determine the cost of goods sold and the ending inventory, while the perpetual inventory system tracks inventory levels and cost of goods sold on a continuous basis. In the periodic system, purchases are recorded in a Purchases account, which is not used in the perpetual system as inventory and cost of goods sold are updated in real-time. Therefore, the correct answer is E, Purchases.

An Account Used in the Periodic Inventory System That Is