Question

Under a periodic inventory system: ______.a. the current inventory available for sale is always known. b. the merchandise inventory balance is updated after each sale and each purchase. c. the merchandise inventory balance reflects the ending inventory. d. the merchandise inventory balance reflects the beginning inventory.

Answer 1

Answer:

C) the merchandise inventory balance reflects the ending inventory.

Explanation:

When a company uses the periodic inventory system, inventory records are updated only at the end of each accounting period. The periodic inventory system records cost of goods sold (COGS) at the end of the accounting period after the inventory records have been updated.