When using the periodic system the physical inventory count is used to determine
A)only the sales value of goods in the ending inventory.
B)both the cost of the goods in ending inventory and the sales value of goods sold during the period.
C)both the cost of the goods sold and the cost of ending inventory.
D)only the cost of merchandise sold during the period.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the physical inventory count is used to determine both the cost of goods sold (COGS) and the cost of ending inventory, as it provides the necessary data to calculate these values at the end of the accounting period.

When Using the Periodic System the Physical Inventory Count Is