MCQ 2 - SU 4-6 Flashcards
1
Q
What are the two options for recording inventory
A
- Periodic inventory system
2. Perpetual inventory system
2
Q
What is the periodic inventory system
A
- Purchase stock with cash
- Post to Purchases and Bank
- At the end of the year, clear out purchases to cost of sales and closing inventory
3
Q
What is the perpetual inventory system
A
- Purchase stock with cash
- Post to inventory and bank
- At point of sale, remove them from inventory and post to cost of sales
4
Q
What are the 3 methods of valuing inventory
A
- LIFO
- FIFO
- AVCO
