Which of the following does not correctly describe a periodic inventory accounting system?
A)In a periodic system cost of goods sold are calculated every time a sale is made.
B)In a periodic system, costs of goods sold are a residual amount.
C)In a periodic system assuming a FIFO cost flow, the cost of goods sold would equal those from a perpetual system
D)In a periodic system, inventory and cost of goods sold must be updated at the end of

Question

Quizplus · Accepted Answer

In a periodic system, cost of goods sold is not calculated every time a sale is made. Instead, a physical inventory count is taken at the end of a period, and cost of goods sold is calculated based on the difference between the beginning inventory and the ending inventory, plus any purchases made during the period.

Which of the Following Does Not Correctly Describe a Periodic