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Which of the following statements about a periodic inventory system is true ?

a) Companies determine cost of goods sold only at

the end of the accounting period.

b) Companies continuously maintain detailed records

of the cost of each inventory purchase and sale.

c) The periodic system provides better control over

inventories than a perpetual system.

d) The increased use of computerized systems has

increased the use of the periodic system.

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Question ajoutée par Moataz Elsabawy , مدير مالى , مجموعه شركات الانصار
Date de publication: 2016/10/13
Wilfredo Quito
par Wilfredo Quito , Accounting Manager , DDC LAND INC.

Thanks for Inviting:

a) Companies determine cost of goods sold only at

the end of the accounting period

Shameer Nazir Madari
par Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)

Answer is 

a) Companies determine cost of goods sold only at the end of the accounting period.

Statement a) is True

 

Disadvantage of the periodic inventory system is that the exact amount of inventory shortage cannot be determined. The amount is buried in cost of goods sold.

Dasarathi Rath
par Dasarathi Rath , Sr. Accountant , Al Luban Special Investment LLC

A. Company determine cost of goods sold only at the end of accounting period  

Aslam Khan
par Aslam Khan , Senior Accounts Officer , Pakistan Software Export Board

agreed with option B as responded above

Sameh Qaisi
par Sameh Qaisi , Senior Accountant , Italian House For Industrial Equipment

The periodic inventory system is most useful for smaller businesses that maintain minimal amounts of inventory (A)