Example of periodic inventory procedure, Accounting Basics

Assignment Help:

Q. Example of Periodic inventory procedure?

Periodic inventory procedure Merchandising companies selling small unit value merchandise such like nuts and bolts Christmas cards nails or pencils that haven't computerized their inventory systems often find that the extra costs of record-keeping under perpetual inventory procedure in excess of outweigh the benefits. These merchandising companies regularly use periodic inventory procedure.

Under periodic inventory procedure, companies do not use the Merchandise Inventory account to record each purchase and sale of merchandise. In its place a company corrects the balance in the Merchandise Inventory account as the result of a physical inventory count at the end of the accounting period. As well the company usually doesn't maintain other records showing the exact number of units that must be on hand. Even though periodic inventory procedure reduces record-keeping it as well reduces control over inventory items.


Related Discussions:- Example of periodic inventory procedure

Trial balance, preparing trial balance with balance method

preparing trial balance with balance method

Sales taxes and schedule of accounts receivable, Sales taxes and Schedule...

Sales taxes and Schedule of accounts receivable Schedule of accounts receivable  Accounts Receivable and individual accounts should match. Only accounts which have

The percentage analysis of changes of corresponding items, The percentage a...

The percentage analysis of changes of corresponding items in comparative financial statements is referred to as horizontal analysis. A. True B. Fals

What is cyclic reporting, Q. What is Cyclic reporting? Cyclic reporting...

Q. What is Cyclic reporting? Cyclic reporting and the matching principle necessitate the preparation of adjusting entries. Adjusting entries are journal entries prepared at the

Prepaid expenses and deferred charges, Q. Prepaid expenses and deferred cha...

Q. Prepaid expenses and deferred charges? Prepaid expenses, deferred charges -- assets already paid for, which are being used up or willexpire. Insurance paid for in advance is

Explain about full disclosure principle, Q. Explain about full disclosure p...

Q. Explain about full disclosure principle? The full disclosure principle states that information significant enough to influence the decisions of an informed user of the finan

Given a net income of $90, Given a net income of $90,000, what is the retur...

Given a net income of $90,000, what is the return on investment for 2000? A. 7.9% B. 22.22% C. 22.78% D. 24.8%

General principles of accounting, Q. General principles of accounting? ...

Q. General principles of accounting? Organizations that have contributed towards the development of the principles are the 1)American Institute of Certified Public Accountants

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd