In a periodic system,inventory balances and the cost of sales for the current period are determined:
A)at the time of sale.
B)when a physical inventory count is taken.
C)on a frequent basis.
D)on the first day of each year.

Question

Quizplus · Accepted Answer

In a periodic system, inventory balances and the cost of sales are determined when a physical inventory count is taken. This means that inventory is not tracked or updated after each sale, but rather at the end of a specific period. Therefore, a physical inventory count is necessary to determine the current inventory levels and any changes in cost of sales.

In a Periodic System,inventory Balances and the Cost of Sales