In a periodic inventory system the ending inventory must be determined by
A)external auditors.
B)physical count.
C)a certification of inventory.
D)reference to a running inventory balance.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the inventory balance is not continually updated as in a perpetual inventory system. Therefore, the ending inventory must be determined by a physical count at the end of the accounting period. This count provides the basis for determining the cost of goods sold and the ending inventory balance.

In a Periodic Inventory System the Ending Inventory Must Be