Which of the following is true under the periodic inventory system?
A)A transaction by transaction unit inventory record is maintained.
B)The cost of goods sold for each sale is recorded at the time each sale is made.
C)A separate account for purchases is used.
D)A continuous inventory record provides the amount of ending inventory and the cost of goods sold throughout the period.

Question

Quizplus · Accepted Answer

Under the periodic inventory system, a separate account for purchases is used to record inventory purchases, and the cost of goods sold is determined at the end of the period, not continuously.

Which of the Following Is True Under the Periodic Inventory