Cost of goods sold is determined only at the end of the accounting period in
A) a perpetual inventory system.
B) a periodic inventory system.
C) both a perpetual and a periodic inventory system.
D) neither a perpetual nor a periodic inventory system.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the cost of goods sold is determined only at the end of the accounting period through a physical count of inventory. In a perpetual inventory system, the cost of goods sold is recorded continuously as inventory is sold, and therefore is determined throughout the accounting period.

Cost of Goods Sold Is Determined Only at the End