Which type of inventory system requires updating the inventory balance at the end of the accounting period?
A)Periodic inventory system
B)LIFO
C)Perpetual inventory system
D)FIFO

Question

Quizplus · Accepted Answer

The periodic inventory system requires updating the inventory balance at the end of the accounting period, unlike the perpetual inventory system which updates continuously. LIFO (Last In, First Out) and FIFO (First In, First Out) are methods for valuing inventory that can be used within both periodic and perpetual systems, but they do not themselves dictate the timing of inventory balance updates.

Which Type of Inventory System Requires Updating the Inventory Balance