Why is it important to take a physical inventory periodically when using a perpetual inventory system?...

Why is it important to take a physical inventory periodically when using a perpetual inventory system?

explain in 150 words

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ekkarill92 answered 2 years ago

Why is it important to periodically take a physical inventory when using a perpetual inventory system?...

Why is it important to periodically take a physical inventory when using a perpetual inventory system? Name a local company that you believe uses periodic inventory systems and a local company that you believe uses perpetual inventory systems. Explain your basis. need help with the questions to form a discussion for my accounting class

Why is it important to count the inventory even if the company uses a perpetual system?

1) What is a periodic inventory system, and what is a perpetual inventory system? Why might...

1) What is a periodic inventory system, and what is a perpetual inventory system? Why might an organization choose one over the other? 2) How do accountants keep track of the number of units sold, if they are using the periodic inventory method? (Hint-basic equation). 3) What are the four basic cost flow methods for inventory valuation? Briefly describe each method and indicate the implications for financial reporting. 4.) How might IFRS affect inventory costing if incorporated into US GAAP?

Perpetual Inventory system

True / False Questions 1. Inventory is a relatively liquid asset and usually appears above Accounts Receivable on the balance sheet. 2. The operating cycle of a merchandising company consists of (1) purchases of merchandise; (2) sales of the merchandise; and (3) collection of accounts receivable. 3. Inventory shrinkage refers to unrecorded decreases in inventory resulting from breakage, theft, and sales of inventory. 4. In a perpetual inventory system, when merchandise is purchased, it is debited to an account called Purchases. 5. In a periodic inventory system, the Cost of...

Why some firms might prefer a perpetual inventory system to a period inventory system? Explain with...

Why some firms might prefer a perpetual inventory system to a period inventory system? Explain with reference to academic source.

Discuss why it is necessary for a governmental agency to take a periodic physical inventory of...

Discuss why it is necessary for a governmental agency to take a periodic physical inventory of supplies, materials and equipment even though the agency keeps a perpetual inventory system.

A company using the perpetual inventory system purchased inventory worth $ 540 000 on account with...

A company using the perpetual inventory system purchased inventory worth $ 540 000 on account with credit terms of 2/15, n/45. Defective inventory of $ 50 000 was returned 3 days later, and the accounts were appropriately adjusted. If the company paid the invoice 25 days later, the journal entry to record the payment would be ________. a. 540,000 debit to accounts payable and $540,000 credit to cash b. 540,000debit to accounts payable , $540,200 credit to cash and $9,800...

1. Under the perpetual inventory system, inventory becomes part of cost of goods sold when a...

1. Under the perpetual inventory system, inventory becomes part of cost of goods sold when a company a. receives payment from the customer b. purchases the inventory c. sells the inventory d. pays for the inventory 2. In credit terms of 4/13, n/45, the "4" represents the a. number of days in the discount period b. number of days when the entire amount is due c. full amount of the invoice d. percent of the cash discount 3. Merchandise with...

What are the differences between Perpetual Inventory System and Periodic Inventory System?

When making investment decisions, why is it important to know what type of inventory costing system...

When making investment decisions, why is it important to know what type of inventory costing system the company uses? Give two examples of ratios and accounts that may be affected by a company's inventory costing method choice.

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