What inventory method is used when the inventory balance is updated only at the end of the accounting period?

Question

Quizplus · Accepted Answer

The periodic inventory method is used when the inventory balance is only updated at the end of the accounting period. Under this method, inventory purchases are recorded in a purchases account and the cost of goods sold is calculated only at the end of the period by subtracting the ending inventory balance from the total cost of goods available for sale. This is in contrast to the perpetual inventory method, where inventory balances are updated continuously. The other options (B, C, D) are not relevant to this question as they refer to different accounting concepts.

What Inventory Method Is Used When the Inventory Balance Is