When using periodic inventory, the closing process begins with closing out the Beginning inventory to Cost of sales.

Name: When using periodic inventory, the closing process begins with closing out the Beginning inventory to Cost of sales.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In periodic inventory systems, the beginning inventory is closed out to the cost of sales account at the end of the accounting period. This is done to clear the beginning inventory balance and to reflect the cost of goods sold during the period.

When Using Periodic Inventory, the Closing Process Begins with Closing