Which one of the following statements is not true?
A)A company using the periodic system does not maintain a continuous record of the physical quantities (or costs)of inventory on hand.
B)In the periodic system, the costs of acquisition of inventory are debited directly to an inventory account.
C)In the perpetual inventory system, recording in detailed subsidiary records can be in units only¾not in dollar costs.
D)When the perpetual system is used, a physical count still needs to be made periodically.

Question

Quizplus · Accepted Answer

In the periodic system, the costs of acquisition of inventory are typically debited to a purchases account, not directly to an inventory account.

Which One of the Following Statements Is Not True