Montreal Furniture uses a periodic inventory system. During an accounting year many purchases and sales of goods occur. For Montreal, the balance in the general ledger inventory account:

Question

Quizplus · Accepted Answer

In a periodic inventory system, the balance in the general ledger inventory account remains constant throughout the accounting period and is only updated when a physical inventory count is conducted, typically at the end of the accounting period.

Montreal Furniture Uses a Periodic Inventory System