In order to determine inventory for its balance sheet, it is best for a company to count the inventory at the end of its accounting period for
A) The perpetual inventory system
B) The periodic inventory system
C) Both the periodic and perpetual inventory systems
D) Neither the periodic nor perpetual inventory systems

Question

Quizplus · Accepted Answer

Both the periodic and perpetual inventory systems benefit from a physical inventory count at the end of the accounting period. In a periodic system, it's essential for determining the cost of goods sold and ending inventory. In a perpetual system, it helps verify the accuracy of the ongoing inventory records.

In Order to Determine Inventory for Its Balance Sheet, It