Under the periodic inventory system,a physical inventory must be taken at the end of the period to determine cost of goods sold.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the cost of goods sold is determined by subtracting the cost of ending inventory from the cost of goods available for sale. To determine the cost of ending inventory, a physical inventory count must be taken at the end of the period to determine the quantity and cost of goods on hand. Therefore, the statement is true.

Under the Periodic Inventory System,a Physical Inventory Must Be Taken