Asked by CHELSEY MYERS on Jun 29, 2024
Verified
What inventory method is used when the inventory balance is updated only at the end of the accounting period?
A) Periodic
B) Perpetual
C) Interim
D) Cost of Goods Sold
Periodic
Relating to or occurring at regular intervals; in accounting, it may refer to methods or adjustments made at regular intervals, such as the Periodic Inventory Method.
Inventory Method
An accounting approach used to value inventory, including procedures like First-In, First-Out (FIFO) or Last-In, First-Out (LIFO).
Perpetual
An inventory system where transactions are recorded in real-time, immediately affecting the inventory account, providing an ongoing record of inventory on hand.
- Differentiate among various inventory approaches and their effects on financial reports.
Verified Answer
Learning Objectives
- Differentiate among various inventory approaches and their effects on financial reports.
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