The unadjusted Merchandise Inventory balance under a periodic inventory system is:
A)The ending inventory amount for the period.
B)The beginning inventory amount for the period.
C)Equal to the cost of goods sold.
D)Equal to the cost of goods purchased.
E)Equal to the gross profit.

Question

Quizplus · Accepted Answer

Under periodic inventory system, the Merchandise Inventory balance is not updated throughout the accounting period. Therefore, the unadjusted Merchandise Inventory balance is the beginning inventory amount for the period.

The Unadjusted Merchandise Inventory Balance Under a Periodic Inventory System