The inventory system whereby the merchandise inventory account balance is merely a record of the most recent physical inventory count is called

Question

Quizplus · Accepted Answer

The description given in the question refers to the periodic inventory system, where the inventory is counted periodically (usually once a year), and the merchandise inventory account balance is adjusted to reflect the latest count. In contrast, perpetual inventory systems continuously track inventory levels and update the account balance with every purchase and sale transaction. Therefore, the best choice is D, periodic.

The Inventory System Whereby the Merchandise Inventory Account Balance Is