Which of the following statements is false?
A)The inventory account is updated after every sale and after every merchandise purchase 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)A cost of goods sold account is updated after each sale of merchandise under the periodic inventory system.
D)A purchases account is used only under the periodic inventory system.

Question

Quizplus · Accepted Answer

Under the periodic inventory system, the cost of goods sold is not updated after each sale. Instead, the cost of goods sold is calculated at the end of the accounting period by taking the beginning inventory, adding purchases, and subtracting the ending inventory.

Which of the Following Statements Is False