Which of the following statements is correct?
A) The relationship between the closing inventories balance under the periodic and perpetual methods will depend on whether the FIFO or weighted average method is used to value inventories.
B) Closing inventories will always be the same under the periodic and perpetual methods.
C) The periodic method of accounting for inventories will always result in a lower closing inventories balance than the perpetual method.
D) The periodic method of accounting for inventories will always result in a higher closing inventories balance than the perpetual method.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is correct?
A) The relationship between the closing inventories balance under the periodic and perpetual methods will depend on whether the FIFO or weighted average method is used to value inventories.
B) Closing inventories will always be the same under the periodic and perpetual methods.
C) The periodic method of accounting for inventories will always result in a lower closing inventories balance than the perpetual method.
D) The periodic method of accounting for inventories will always result in a higher closing inventories balance than the perpetual method.

Which of the Following Statements Is Correct