Under a periodic inventory system
A) accounting records continuously disclose the amount of inventory
B) a separate account for each type of merchandise is maintained in a subsidiary ledger
C) a physical inventory is taken at the end of the period
D) merchandise inventory is debited when goods are returned to vendors

Question

Quizplus · Accepted Answer

Under a periodic inventory system, a physical inventory is taken at the end of the period to determine the ending inventory and cost of goods sold. Therefore, choice C is the correct option. The other options are not specific to periodic inventory systems.

Under a Periodic Inventory System