1 Explain the operation of a periodic inventory system.

2 The periodic inventory system is likely to be used by a business that sales variety of merchandise with low unit prices, such as a drugstore or hardware store.

3 The periodic inventory system is likely applied to a business that sells a variety of merchandise with low unit price, such as a drugstore, groceries or hardware store.

4 The accounting recording procedures are different under the periodic inventory system and the perpetual inventory system.

5 In the periodic inventory system, the business does not keep a continuous record of the inventory on hand.

6 Physical inventory at fixed periods must be taken under either perpetual inventory system or periodic inventory system.

7 The two alternative approaches to the determination of inventory and of cost of goods sold are called the perpetual inventory system and the periodic inventory system .

8 In small businesses , the owner can visually inspect the goods on hand for control purposes. The end-of-chapter supplement covers the periodic inventory system.

9 The following entries demonstrate the recording procedures to be followed under the perpetual inventory system , as contrasted with the periodic inventory system .

10 Businesses such as office supply outlets, restaurants, and small de-partment stores also use the periodic inventory system.

11 During the period of inflation, is a balance of stock system or a periodic inventory system regardless, account the price tool and will produce the different result differently.