Which of the following is a characteristic of a periodic inventory system? a. The system reports how much inventory is on hand at all times. b. The system does not maintain a continuous record of the quantities of inventory on hand or inventory sold c. The computer tracks inventory upon a sale, and the cost of goods and inventory are immediately updated. d. Purchases of inventory are recorded to the inventory account.

Q: Under a perpetual inventory system a. accounting records continuously disclose the amount of…

A: Under the perpetual inventory system, purchases and sales are continuously updated to the inventory.

Q: Which of the following is not an advantage of a perpetual inventory system? a. Assists in the…

A: The perpetual inventory method is a much better method in comparison to the periodic inventory…

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: Which of the following documents is not often used for inventory control? Vendor's invoice Sales…

A: Explanation to Question 1 Vendor invoice is a document that contain the amount owned by the…

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: Periodic inventory system: The method or system of recording the transactions related to 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: Which of the following are characteristics of a perpetual inventory system? (a). Management knows…

A: There were two types of inventory systems to record and maintain inventory.   1. Periodic…

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

A: Definition:

Q: The two basic approaches to accounting for inventory and thecost of goods sold are the perpetual…

A: Introduction: Perpetual inventory system: Under this system of inventory maintenance, the…

Q: Which of the following procedure is designed to prevent the company from ordering unnecessary items?…

A: D) Approval of purchase requisitions is the procedure designed to prevent the company from ordering…

Q: Which of the following is not an advantage of a perpetual inventory system? a. assits in the…

A: Under the perpetual inventory system, transaction related to the inventory is updated immediately as…

Q: Ali is planning to implement an inventory control system where the store's ledger should show the…

A: The Inventory system that should be used for regular updation of store ledger account showing…

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: A retailer’s physical count of inventory was higher than that shown by the perpetual records.Which…

A: When the physical count of inventory is higher than the accounting records, the reasons would be…

Q: True or False

A: Given statement is: Under the periodic inventory system, the merchandise inventory account is not…

Q: Which of the following statements about a periodic inventory system is true? a. The periodic system…

A: Periodic inventory system means where day to day in or out of goods is not recorded and value of…

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: To reduce the risk of allowing an order to proceed when goods are not available or rejecting an…

A: solution : The correct answer is Maintain accurate and timely perpetual inventory records and…

Q: When using special journals for recording and posting transactions, it does not matter if it is a…

A: The perpetual inventory system is the inventory valuation system that counts the inventory on a…

Q: Under the perpetual inventory system, the business does not maintain records that show the running…

A: Solution: Under perpetual inventory system, inventory record is updated with every purchase and sale…

Q: Which one of the following statements is not true? a. A company using the periodic system does not…

A: At the end of the period, there is still a need to match the inventory value with the physical…

Q: The company just took a physical count of inventory and found $75 worth of inventory wasunaccounted…

A: In accounting, some special journals are being used for the purpose of recording transactions. These…

Q: Why is it important to periodically take a physical inventory when using a perpetual inventory…

A:

Q: If an accounting manager asks you to delay recording an invoice for the purchase of merchandise…

A: Income statement is prepared by the business organizations so as to know how much amount of gross…

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

A:

Q: Under the perpetual system of inventory, the Inventory account is debited at each purchase and…

A: Perpetual Inventory System:-it is a system of inventory valuation where inventory gets calculate on…

Q: In a retail business that uses a perpetual inventory system, scanning a bar code does not: O…

A: In a retail business that uses a perpetual inventory system, scanning a bar code does not: Option…

Q: Which of the following is false regarding a perpetualinventory system?a. Physical counts are never…

A: Option “a” is the correct answer that is physical counts are never needed because records are…

Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: Under this inventory system, the “Inventory” account is updated each time a purchase or sale is…

A: Solution: Under perpetual inventory system, inventory is updated with every purchase and sale. Cost…

Q: Taking a physical count of inventory is not necessary when a periodic inventory system is used…

A: Dear student, as per Bartleby answering guidelines we can answer only the first question. To get the…

Q: In the periodic inventory system, all purchases of merchandise during the period is recorded on what…

A: There are two type of inventory systems in the business. One is perpetual inventory system and other…

Q: In Periodic inventory system the goods are a. Not recorded till the time cost of goods are known b.…

A: For calculating the accurate inventory costs and maintaining the appropriate inventory…

Q: Each statement describes a characteristic of the periodic and/or perpetual inventory systems. Some…

A: At the end of the accounting period, two inventory systems usually must be made in the accounts. The…

Q: All of the following are documents used for inventory control except Oa. a receiving report. Ob. a…

A: There are various documents that works as evidence of a transaction.

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 are several items that Golosow Company's controller has questioned regarding their…

A: Inventory refers to the goods that are remaining unsold at the end of the accounting period. To…

Q: Without a computerized inventory accounting system, a perpetual inventory system would most easily…

A: Perpetual Inventory System: In Perpetual Inventory system the purchase and sale are recorded…

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.