Which of the following statements is correct?
A) the periodic method of accounting for inventory will always result in a higher closing inventory balance than the perpetual method;
B) the periodic method of accounting for inventory will always result in a lower closing inventory balance than the perpetual method;
C) closing inventory will always be the same under the periodic and perpetual methods;
D) the relationship between the closing inventory balance under the periodic and perpetual methods will depend on whether the FIFO or weighted average method is used to value inventory.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is correct?
A) the periodic method of accounting for inventory will always result in a higher closing inventory balance than the perpetual method;
B) the periodic method of accounting for inventory will always result in a lower closing inventory balance than the perpetual method;
C) closing inventory will always be the same under the periodic and perpetual methods;
D) the relationship between the closing inventory balance under the periodic and perpetual methods will depend on whether the FIFO or weighted average method is used to value inventory.

Which of the Following Statements Is Correct