The major difference between the periodic and perpetual inventory systems is that inventory must be physically counted in the periodic system to determine ending inventory.

Question

Quizplus · Accepted Answer

In the periodic inventory system, inventory is not consistently tracked and recorded throughout the accounting period, so physical counting is necessary to determine the ending inventory balance. In contrast, the perpetual inventory system continuously tracks changes in inventory levels, so a physical count is not always necessary to determine the ending inventory balance.

The Major Difference Between the Periodic and Perpetual Inventory Systems