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Indicate Whether Each of the Following Statements Is True or False

Question 105

Matching

Indicate whether each of the following statements is true or false.

Premises:

Responses:

A periodic inventory system requires more detailed record keeping than a perpetual inventory system.

True

A physical count of inventory at the end of each accounting period is necessary for the periodic inventory system,as well as for the perpetual inventory system.

False

The perpetual inventory system recognizes inventory transactions as they occur.

The periodic inventory system recognizes sales revenue at the end of the accounting period.

With a periodic inventory system,cost of goods sold is not determined until the end of the accounting period.

Premises:

A periodic inventory system requires more detailed record keeping than a perpetual inventory system.

A physical count of inventory at the end of each accounting period is necessary for the periodic inventory system,as well as for the perpetual inventory system.

The perpetual inventory system recognizes inventory transactions as they occur.

The periodic inventory system recognizes sales revenue at the end of the accounting period.

With a periodic inventory system,cost of goods sold is not determined until the end of the accounting period.

Responses:

True

False

Correct Answer:

Premises:

Responses:

A periodic inventory system requires more detailed record keeping than a perpetual inventory system.

A physical count of inventory at the end of each accounting period is necessary for the periodic inventory system,as well as for the perpetual inventory system.

The perpetual inventory system recognizes inventory transactions as they occur.

The periodic inventory system recognizes sales revenue at the end of the accounting period.

With a periodic inventory system,cost of goods sold is not determined until the end of the accounting period.

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