Question

Under a periodic inventory system a.a separate account for each type of merchandise is maintained in a subsidiary ledger b.inventory is debited when goods are returned to vendors c.a physical inventory is taken at the end of the period d.accounting records continuously disclose the amount of inventory

Answer 1

Answer:

C) a physical inventory is taken at the end of the period

Explanation:

Under the periodic inventory system, the cost of goods sold is determine at the end of the accounting only after a physical count of the inventory has been made. It requires to physically count the units held in inventory to determine how many were actually sold.

On the other hand, a perpetual inventory system continuously discloses the amount of inventory.