Reference no: EM132581537

Question 1: When a company uses the periodic inventory system in accounting for its merchandise inventory, which of the following is true?

Option 1: The inventory account is updated after each sale.

Option 2: Cost of goods sold is computed at the end of the accounting period rather than at each sale

Option 3: The inventory account is updated throughout the year as purchases are made

Option 4: Purchases are recorded in the cost of goods sold account.

Option 5: None of the others alternatives are correct