In a periodic inventory system, the cost of purchases is recognized as
A)an integral part of the calculation of cost of goods sold.
B)the only part of the calculation of cost of goods sold.
C)an increase in the inventory account.
D)an increase in an asset account.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the cost of purchases is added to the beginning inventory to calculate the cost of goods available for sale, which is then used to determine the cost of goods sold.

In a Periodic Inventory System, the Cost of Purchases Is