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?
Describe (80 to 100 words) the advantages of the perpetual
inventory system compared with the periodic system, with particular
regard to the aspect of physical stocktaking.
1. Describe the difference between a periodic and a perpetual
inventory system
2. What are closing entries and why do we do them?
3. What is the adjusting process and why is used?