Under a periodic inventory system
A) accounting records continuously disclose the amount of inventory
B) a separate account for each type of merchandise is maintained in a subsidiary ledger
C) a physical inventory is taken at the end of the period
D) inventory is debited when goods are returned to vendors

Question

Quizplus · Accepted Answer

Under a periodic inventory system, a physical inventory is taken at the end of the period to determine the ending inventory balance. This information is then used to calculate Cost of Goods Sold (COGS) for the period. The other choices are not applicable to a periodic inventory system.

Under a Periodic Inventory System