In comparing a perpetual inventory system with a periodic inventory system,which of the following statements is not correct?
A)Most large companies use perpetual inventory systems.
B)A periodic system does not include an inventory subsidiary ledger.
C)The perpetual method is easier to apply in a manual accounting system.
D)Regardless of the system in use,most businesses take a physical inventory at least once a year.

Question

Quizplus · Accepted Answer

The periodic system is easier to apply in a manual accounting system because it does not require updating inventory records continuously like the perpetual method. Therefore, statement C is incorrect.

In Comparing a Perpetual Inventory System with a Periodic Inventory