The cost of goods sold section of a statement of income prepared under a periodic inventory system will contain more detail than under a perpetual inventory system.

Question

Quizplus · Accepted Answer

Under a periodic inventory system, the cost of goods sold is calculated at the end of the period, and the detailed information about the cost of goods sold is not available until then. Under a perpetual inventory system, the cost of goods sold is updated continuously, and the detailed information about the cost of goods sold is available at any time.

The Cost of Goods Sold Section of a Statement of Income