When a Company Uses the Periodic Inventory System in Accounting

Multiple Choice

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

A) Purchases are recorded in the cost of goods sold account.
B) The inventory account is updated after each sale.
C) Cost of goods sold is computed at the end of the accounting periods rather than at each sale.
D) The inventory account is updated throughout the year as purchases are made.