In a periodic inventory system you must
A) track the number or cost of units sold during the year.
B) wait until the end of the year to allocate the costs of goods available for sale to ending inventory and cost of goods sold.
C) adjust inventory after each purchase only.
D) adjust inventory after each sale only.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the cost of goods sold and ending inventory are determined at the end of the accounting period, not after each purchase or sale. This system does not require tracking the number or cost of units sold during the year on a continuous basis, nor does it adjust inventory after each purchase or sale.

In a Periodic Inventory System You Must