A(n)__________ requires estimating inventory balances during the year for interim financial statements and a formal count of all inventory items at the end of the year.
A)periodic inventory system
B)inventory control account
C)perpetual inventory system
D)inventory cost method

Question

Quizplus · Accepted Answer

A periodic inventory system involves taking physical inventory counts periodically (such as at the end of the year) and estimating inventory balances during the year for financial reporting purposes. The other options (B, C, and D) are not directly related to this process.

A(n)__________ Requires Estimating Inventory Balances During the Year for Interim