If a merchandiser uses the periodic inventory system, it is necessary to conduct physical count of inventory to determine the quantity of inventory on hand.

Question

Quizplus · Accepted Answer

With the periodic inventory system, the inventory balance is not updated continuously but is periodically adjusted based on physical counts or estimates. Therefore, it is necessary to conduct a physical count of inventory to determine the quantity of inventory on hand.

If a Merchandiser Uses the Periodic Inventory System, It Is