A company's amount of cost of goods sold reported on the income statement will be the same with a periodic inventory system as it would be with a perpetual system.

Question

Quizplus · Accepted Answer

The choice of perpetual or periodic inventory system does not affect the amount of cost of goods sold reported on the income statement.It only affects the manner in which transactions are entered into the accounting system.

A Company's Amount of Cost of Goods Sold Reported on the Income