One difference between periodic and perpetual inventory systems is:
A) Cost of goods sold is not recorded under a perpetual system until the end of the period.
B) Cost of goods sold is not recorded under a periodic system until the end of the period.
C) Cost of goods sold is always significantly higher under a perpetual system.
D) Cost of goods sold is always significantly higher under a periodic system.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the cost of goods sold is calculated at the end of the accounting period by conducting a physical inventory count. This contrasts with a perpetual system, where the cost of goods sold is recorded continuously as sales occur.

One Difference Between Periodic and Perpetual Inventory Systems Is