In a periodic system, inventory balances and the cost of sales for the current period are determined:
A)on the first day of each year.
B)when a physical inventory count is taken.
C)on a frequent basis.
D)at the time of sale.

Question

Quizplus · Accepted Answer

In a periodic inventory system, inventory balances and cost of sales are determined when a physical inventory count is taken, typically at the end of an accounting period.

In a Periodic System, Inventory Balances and the Cost of Sales