Which of the following statements is not correct? A. In a perpetual inventory system, the "cash register" at the store is a computer terminal that records sales and updates inventory records. B. In a periodic inventory system, merchandise inventory and purchasing systems are integrated with the records for Accounts Receivable and Sales Revenue. C. Even in a perpetual inventory system, a business must count inventory at least one a year. D. Restaurants and small retail stores often use the periodic inventory system.

Question

Business

Cara Huynh

29 August, 23:35

Which of the following statements is not correct? A. In a perpetual inventory system, the "cash register" at the store is a computer terminal that records sales and updates inventory records. B. In a periodic inventory system, merchandise inventory and purchasing systems are integrated with the records for Accounts Receivable and Sales Revenue. C. Even in a perpetual inventory system, a business must count inventory at least one a year. D. Restaurants and small retail stores often use the periodic inventory system.

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Answers (1)

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Johnathon Bennett · Answer 1

The correct option is B

Explanation:

Periodic Inventory System is an inventory accounting system that allows for the periodic update of the merchandise inventory and accounts receivable accounts in the books the seller, which means there is an assigned period for the inventory clerks to conduct any inventory counts in the company's warehouse.

Option D is false because the statement should be Merchandise Inventory or Cost of Goods Sold since Periodic Inventory System allows for a periodic update of the said accounts. so, there is no logical reasons to integrate it with the Accounts Receivable and Revenue accounts.