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Which Of The Following Statements About A Periodic Inventory System Is True?

by admin
September 12, 2021
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Answer added by Shameer Nazir Madari, Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)4 years ago

Answer is 

a) Companies determine cost of goods sold only at the end of the accounting period.

You are watching: Which of the following statements about a periodic inventory system is true?

Statement a) is True

 

Disadvantage of the periodic inventory system is that the exact amount of inventory shortage cannot be determined. The amount is buried in cost of goods sold.

See more: 5410 Herbert Lord Road Indianapolis, In 46216, Fc Pride 04 Red Indiana Invaders 04

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The periodic inventory system is most useful for smaller businesses that maintain minimal amounts of inventory(A)

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