The primary difference between a periodic and
perpetual inventory system is that a periodic system
|
|
provides
better control over inventories.
|
|
|
records
the cost of the sale on the date the sale is made.
|
|
|
keeps a
record showing the inventory on hand at all time.
|
|
|
determines
the inventory on hand only at the end of the accounting period.
|
Gross profit does not appear
|
|
on a
merchandising company income statement.
|
|
|
to be
relevant in analyzing the operation of a merchandising company.
|
|
|
on the
income statement if the periodic inventory system is used because it cannot
be calculated.
|
|
|
on a
service company income statement.
|
Interest expense would be classified on a
multiple-step income statement under the heading
|
|
Cost of
goods sold.
|
|
|
Operating
expenses.
|
|
|
Other
expenses and losses.
|
|
|
Other
revenues and gains.
|
No comments:
Post a Comment