In a periodic inventory system the quantity of ending inventory is determined by
A)subtracting units sold from units purchased.
B)a physical inventory count.
C)looking at the balance in the inventory account.
D)subtracting cost of goods sold from the beginning inventory balance.
E)adding units sold to the beginning inventory balance.

Question

Quizplus · Accepted Answer

In periodic inventory systems, the ending inventory is determined by conducting a physical inventory count of the remaining goods. This means physically counting the number of goods on hand and calculating their total value based on their unit cost. Options A, C, D, and E do not accurately determine the quantity of ending inventory in a periodic inventory system.

In a Periodic Inventory System the Quantity of Ending Inventory