Montreal Furniture Uses a Periodic Inventory System

Multiple Choice

Montreal Furniture uses a periodic inventory system. During an accounting year many purchases and sales of goods occur. For Montreal, the balance in the general ledger inventory account:

A) does not change until a stock-take is carried out.
B) represents the goods on hand at any given point in time.
C) reports the goods purchased since the beginning of the accounting period.
D) will usually be zero except at a balance sheet date.