Question

Which of the following inventory valuation methods produce(s) the same dollar amount as the balance in ending inventory under both periodic and perpetual inventory systems? FIFO LIFO a. Yes Yes b. No Yes c. Yes No d. No No

Answer 1

Answer:

c. Yes,  No

Explanation:

• The difference between the periodic and the perceptual inventory system is that the period system is based on the occasional physical accounts of the inventory to determine the ending inventory balance and costs of the goods and services sold.

• The perceptual system keeps a track of the inventory balances.