Under the periodic inventory system:
A)inventory must be counted at the beginning and end of each accounting period.
B)inventory must only be counted at the end of each accounting period.(The ending inventory from the previous period can be used as the beginning inventory for the next period.)
C)inventory does not have to be counted.(It can be taken from the accounting records.)
D)inventory levels must be counted every day.

Question

Quizplus · Accepted Answer

Under the periodic inventory system, inventory is only required to be counted at the end of each accounting period. The ending inventory from the previous accounting period can be used as the beginning inventory for the next period. This means that the inventory balance is only updated periodically, rather than continuously.

Under the Periodic Inventory System