If a company is using a periodic inventory system,the balance in its inventory account three-quarters of the way through an accounting period would be equal to the
A)amount of inventory on hand at that date.
B)inventory on hand at the beginning of the period.
C)total of the beginning inventory plus goods purchased during the accounting period.
D)amount of goods purchased during the period.
E)inventory on hand at the beginning of the period multiplied by 75%.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the balance in the inventory account remains constant throughout the accounting period and only updates at the end of the period after a physical inventory count. Therefore, three-quarters of the way through the period, the balance would still reflect the inventory on hand at the beginning of the period.

If a Company Is Using a Periodic Inventory System,the Balance