Asked by Denia Drake on May 12, 2024
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Under a periodic inventory system the acquisition of inventory is charged to the Purchases account.
Periodic Inventory System
An accounting approach where inventory and cost of goods sold are calculated at set periods, rather than continuously.
Acquisition of Inventory
The process of obtaining goods or materials for sale or use, either through purchase or production.
Purchases Account
A general ledger account in which the purchases of goods intended for resale are recorded.
- Acquire knowledge of the essential accounting concepts applicable to different inventory frameworks.
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Learning Objectives
- Acquire knowledge of the essential accounting concepts applicable to different inventory frameworks.
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