Which of the following statements about a periodic inventory system is not correct?
A)These systems are used primarily by small businesses with manual accounting systems.
B)The system does not include an up-to-date inventory ledger.
C)The balance in the Inventory account remains unchanged until the end of the period.
D)The Cost of Goods Sold account is updated as sales transactions occur.

Question

Quizplus · Accepted Answer

In a periodic inventory system, the Cost of Goods Sold (COGS) account is not updated as sales transactions occur. Instead, COGS is calculated at the end of the accounting period by taking the beginning inventory, adding purchases, and subtracting the ending inventory.

Which of the Following Statements About a Periodic Inventory System