Which one of the following statements is not true?
A)The Inventory account is updated after every sale or purchase of merchandise under the perpetual inventory system.
B)The Inventory account is updated only at the end of the accounting period under the periodic inventory system.
C)The Cost of Goods Sold account is updated after each sale of merchandise under the periodic inventory system.
D)The Purchases account is used only under the periodic inventory system.

Question

Quizplus · Accepted Answer

Under the periodic inventory system, the Cost of Goods Sold account is not updated after each sale of merchandise. Instead, it is calculated at the end of the accounting period by subtracting the ending inventory from the sum of beginning inventory and purchases.

Which One of the Following Statements Is Not True