Each statement describes a characteristic of the periodic and/or perpetual inventory systems. Some statements relate to only one system, some statements relate to both systems, and some relate to neither system.  1. At the end of the accounting period, two inventory systems usually must be made in the accounts.   2. Inventory amounts are determined from the detailed inventory records.  3. A physical inventory count rarely, if ever, is taken.

Q: Under a perpetual inventory system, what are the four inventory costing methods and how does each…

A: The four inventory costing methods are: Specific identification FIFO (First-In, First-Out), LIFO…

Q: What is the main difference between a perpetual inventory system and a periodic inventory system?…

A: Inventory can be valued under two methods. 1. perpetual inventory method 2. Periodic inventory…

Q: What is the major difference between a periodic and a perpetual inventory system? Oa. Under the…

A: The question is related to Inventory Management. In Perpetual Inventory system the merchandise…

Q: Perpetual versus Periodic Inventory Systems Graham Company is trying to select an inventory system.…

A: The inventory management system mechanism involves the efficient management of the storage of goods…

Q: Which of the following is a characteristic of a periodic inventory system? a. The system reports how…

A:

Q: Explain the steps necessary to calculate and record LIFO Reserve, and consequential Write-Down under…

A: LIFO reserve refers to the inventory method which is defined as the difference among what the ending…

Q: 46. When a company uses the periodic inventory system in accounting for its merchandise inventory,…

A: Inventory is one of the important current asset of the business. It includes inventory of raw…

Q: Hugo Ltd., follows the LIFO system. From the particulars given below, ascertain the cost of sales…

A: Last-in, first-out method: Under the last-in-first-out method goods that are brought at later dates…

Q: Which function or department below records the decrease in inventory due to a sale? a. warehouse b.…

A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Q: Is an adjusting entry needed for inventory shrinkage when using the periodic inventory system?…

A: Definition:

Q: Perpetual versus Periodic Inventory Systems Graham Company is trying to select an inventory system.…

A: Periodic and Perpetual inventory systems are two systems that are used to account inventory…

Q: The inventory accounts of a manufacturer are ________________, _____________________and…

A: The inventory accounts of a manufacturer are _______Raw material inventory_, Work in process…

Q: Listed below are several terms and phrases associated with inventory measurement. Pair each item…

A: FIFO : First-in-first-out LIFO : Last-in-first-out Gross method : The sales / purchases are recorded…

Q: Identify whether each description best applies to a periodic or a perpetual inventory system.…

A: Given description is:  Requires an adjusting entry to record inventory shrinkage.

Q: The inventory that continually discloses the amount of inventory on hand is called:   a) specific…

A: a) Under specific identification method, inventory is counted at the end of the period physically…

Q: When a periodic inventory system is used, a.only revenue is recorded each time a sale is made.…

A: Under perpetual inventory, both the sales entry and cost of goods sold entry are recorded each time…

Q: When preparing a worksheet for a merchandising company using periodic inventory system, which…

A: 1. The income statement contains all temporary accounts and the balance sheet contains all the…

Q: What are the main differences between periodic inventory system and perpetual inventory system?…

A: Periodic inventory system: A periodic inventory system may be a variety of inventory valuation…

Q: Assuming a periodic inventory system is used, the journal entry to record the purchase of…

A: Let's understand some basics Merchandise is the term used to refer to any goods purchased for the…

Q: Understand and apply rules for measurement of inventory at the end of the reporting period.

A:

Q: Inventory taken by the owner of the entity for personal use, will affect which of the following…

A: Periodic inventory system is the system of accounting in which inventory is calculated at the end of…

Q: Highlight the differences in the closing process when using the periodic inventory system rather…

A: Definition:

Q: A company that uses the periodic inventory system makes the following errors:…

A: Periodic inventory system refers to a method of inventory valuation in which physical count of…

Q: accou method at the end of each period, as if it uses a periodic inventory system. Assume its…

A: Given : Transactions Units Unit Cost Beginning inventory, January 1  200 $ 30 Transactions…

Q: The two main inventory accounting systems are the Perpetual and periodic. purchase and sale.…

A: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a…

Q: In your own words, discuss the differences between a perpetual and periodic inventory system. Your…

A: Inventory is the current asset posted on the balance sheet of the company.

Q: The two systems of measuring inventory are: Select one: a. perpetual and periodic b. periodic and…

A: Answer: Option a

Q: Explain the types of inventory and the differences between a perpetual inventory system and a…

A:

Q: A company reports inventory using the lower of cost and net realizable value. Below is information…

A: a. Inventory Cost NRV Cost per unit Quantity Ending inventory A 37 39 37 13 $481 B 44 41 41…

Q: Which statements are true? 1. Perpetual system keeps only costs of inventories up-to-date, whereas…

A: Perpetual Inventory system :- It is method of inventory control in which every inflow and outflow of…

Q: Which of the following is used to analyze the efficiency and effectiveness of inventory management?…

A: Formulas:  Inventory turnover ratio = Cost of goods sold / Average inventory Days' sales in…

Q: What should be the journal entry to match the inventory record to the physical count of inventory?…

A: Inventory is the goods which the company has which are in order to sell them. In simple terms, these…

Q: 2. Suppose by the end of November that the remaining inventory is estimated to have a net realizable…

A: The inventory is recorded at the lower of cost or net realizable value under the conservatism…

Q: why both the "beginning inventory" and "ending inventory" figures both appear on the Income…

A: Periodic inventory system is a inventory system in which all purchase and sale transactions related…

Q: under the system the ending inventory and cost of goods sold are determined at the end of the…

A: Inventory in the business can be maintained through perpetual inventory system or periodic inventory…

Q: The Esquire Company employs a periodic inventory system. Indicate the effect (increase or decrease)…

A: Periodic Inventory System: Under this system, the balance of the merchandise inventory is not…

Q: The costs of ending inventory is similar under both periodic and perpetual inventory system if…

A: The given question is related to inventory valuation. The first method of inventory valuation is the…

Q: What is the inventory system called that discloses the amount of inventory on hand ONLY at the end…

A: The periodic inventory system is an inventory system that involves a periodic physical inventory…

Q: The following information applies to the questions displayed below.]   A company reports inventory…

A: Concept:

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.