Features of perpetual inventory system

Q: What are the important factors in using a perpetual inventory system?

A: There are two types of inventory systems: Perpetual and Periodic.

Q: Explain the LIFO retail inventory method.

A: LIFO: Under this inventory method, the units that are purchased last, are sold first. Thus, it…

Q: A. Record the infomation on a perpetual inventory record using each of the following methods: 1.…

A:

Q: Differentiate between periodic and perpetual inventory system with the help of an example.

A: The monetary amount associated with the goods in inventory at the end of an accounting period is…

Q: What are characteristics of the perpetual inventory system?

A: Perpetual Inventory System: Perpetual Inventory System refers to the inventory system that maintains…

Q: What is a Perpetual inventory system?

A: Perpetual Inventory System: The perpetual inventory system records and updates the inventory after…

Q: what is FIFO inventory method?

A: FIFO inventory method is one of the methods of calculation of value of ending Inventory and cost of…

Q: Describe the alternative approaches for recording inventory write-downs.

A: Inventory write-down: As per GAAP (Generally Accepted Accounting Principles), the companies are…

Q: the difference between periodic inventory and perpetual inventory.

A: Inventory system of book keeping means where proper books of account relating to inventory has been…

Q: Continuous determination of inventory ending value and gross profits are available in one of the…

A: The inventory valuation is performed differently in different systems.

Q: Inventory tumover

A: Inventory turnover ratio = Cost of goods sold/((Opening inventory + Closing inventory)/2)

Q: Explain the term inventory turnover.

A: The ratio analysis is performed to analyze the statements of the business on the basis of various…

Q: Explain whether the physical inventory should be equal to the amount indicated by the inventory…

A: Solution Concept Perpetual inventory system : The inventory system where the inventory records are…

Q: Define Periodic inventory system.

A: Periodic inventory is a system of inventory in which updates are made on a periodic basis. This…

Q: Differentiate between perpetual and periodic Inventory system.

A: Under the perpetual inventory system, every single movement of the inventory traces as and when they…

Q: What is inventory conversion period?

A: Conversion period refers to the length of period at which one asset is converted into another form.…

Q: Required: Hemming uses a perpetual inventory system.    2. Determine the costs assigned to ending…

A: LIFO is the inventory valuation method in which inventories purchased at last will be sold first in…

Q: Show the necessary computation in perpetual inventory system Invoice VAT 12%

A: Journal Entry The purpose of providing the journal entry to enter the required transaction into…

Q: FIFO method to determine its cost of inventory.

A: Under FIFO method of inventory valuation, goods come first into the store are sold first.

Q: Which of the following statements appropriately describes attributes of perpetual and periodic…

A: Inventory is the goods which company is having to sale or which is also known as goods available for…

Q: a) Discuss the reasons why a proper understanding of the free on board (FOB) terms is important when…

A: FOB is an abbreviation for free on board. Free on Board means the seller takes risk till the time…

Q: Describe a  Comparison of the Perpetual and Periodic Inventory Systems

A:

Q: Assume the perpetual inventory system is used. Determine the costs assigned to ending inventory when…

A: LIFO Method It is the method used for recording Inventory. Under this method, it is assumed that the…

Q: Required:

A: The inventory to be valued at the year end has two system mainly perpetual and periodic. Under the…

Q: Discuss the different types of Inventory system

A: Traditionally the inventory is recorded by manually counting the items in the warehouse and it is…

Q: Prepare the inventory records using the First-in-first-out (FIFO) method.

A: FIFO Method - In this method, the quantity which is purchased first is sold first and basis on that…

Q: Define Perpetual inventory system.

A: A perpetual inventory system updates and records the transaction as and when it occurs either at the…

Q: Describe the typical approach for recording inventory write-downs.

A: Inventory write-down: As per GAAP (Generally Accepted Accounting Principles), the companies need to…

Q: Define Retail Inventory Method.

A: Retail inventory method: The retail inventory method is used to calculate the value of ending…

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

A: Periodic inventory system and Perpetual inventory systems are two systems used for the inventory…

Q: Explain the inventory accounting system.

A: Inventory accounting is the body of accounting that used to valuing and accounting for changes in…

Q: How about perpetual inventory system

A: The difference between the recording of the inventory under periodic and perpetual inventory system…

Q: A perpetual inventory system has these characteristics:

A: Perpetual inventory is a technique in which the sale and purchases of stocks are recorded with the…

Q: Understand inventory classifications and different inventory systems.

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

Q: Explain the differences between a Perpetual Inventory system and a Periodic Inventory System.…

A: Periodic Inventory System:-  Its an Inventory Valuation Method where inventory account is updated at…

Q: Explain inventory system and its functions

A: Inventory is the detailed list of items that are present on hand. It constitute of all the finished…

Q: What is just-in-time (JIT) inventory system?

A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…

Q: Explain an example of periodic inventory system.

A: In periodic system the transactions of sales and purchase of inventory is recorded at a certain…

Q: Identify inventory classifications and different inventory systems.

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

Q: What is the difference between perpetual and periodic inventory system

A: Introduction:- The most important variation between the periodic and perpetual inventory systems is…

Q: Question: Explain the First-In, First-Out (FIFO) method used for determining COGS and Ending…

A: The inventory can be valued using various methods as FIFO, LIFO, average method.

Q: What is the meaning of perpetual or periodic inventory system

A: Normally  the materials purchased for production may not be  fully consumed. There is some quantity…

Q: Differentiate between perpetual and periodic Inventory system.

A: Perpetual inventory system refers to the method of inventory management which records the real-time…