Periodic inventory systems require updating of the inventory account
A) after each sale.
B) after each purchase.
C) only at the end of a period.
D) on a daily basis.

Question

Quizplus · Accepted Answer

Periodic inventory systems update the inventory account only at the end of a period, such as at the end of a month or a year. This is because the inventory is counted at the end of the period to determine the ending inventory value. Transactions during the period, such as sales and purchases, are tracked separately and then used to calculate the cost of goods sold and the change in inventory value at the end of the period.

Periodic Inventory Systems Require Updating of the Inventory Account