Identify whether each description best applies to a periodic or a perpetual inventory system.

Question

a. Provides more timely information to managers.
b. Requires an adjusting entry to record inventory shrinkage.
c. Markedly increased in frequency and popularity in business within the past decade.
d. Records cost of goods sold each time a sales transaction occurs.
QS 5-

Answer 1

1

a. Periodic
b. Perpetual
c. Perpetual
d. Perpetual