Match the items below by choosing the appropriate code letter .
-Requires a physical count of goods on hand to compute cost of sales.
A) Net sales
B) Cash discount
C) Credit terms
D) Periodic inventory system
E) Gross profit ratio
F) Contra revenue
G) Freight-out
H) Gross profit
I) Sales invoice
J) Business activity statement
K) Input tax credit
L) Purchase discount

Question

Quizplus · Accepted Answer

The periodic inventory system requires a physical count of goods on hand at the end of the accounting period to determine the cost of goods sold. This system does not continuously update inventory records with each sale or purchase but rather calculates inventory levels and cost of goods sold at the end of the period through a physical inventory count.

Match the Items Below by Choosing the Appropriate Code Letter