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

Question

Quizplus · Accepted Answer

In a periodic inventory system, inventory balances and the cost of goods sold are determined when a physical inventory count is taken, typically at the end of an accounting period. This contrasts with perpetual systems where inventory and COGS are updated continuously.

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