Which of the following is a true statement about inventory systems?
A) Periodic inventory systems require more detailed inventory records.
B) Perpetual inventory systems require more detailed inventory records.
C) A periodic system requires cost of goods sold be determined after each sale.
D) A perpetual system determines cost of goods sold only at the end of the accounting period.

Question

Quizplus · Accepted Answer

Perpetual inventory systems require more detailed inventory records because they track inventory levels in real-time and update inventory records with each purchase or sale. Periodic inventory systems do not require as detailed of inventory records because they only determine the cost of goods sold at the end of a period through a physical inventory count.

Which of the Following Is a True Statement About Inventory