Choose the Correct Statement Concerning Periodic and Perpetual Inventory Systems

Multiple Choice

Choose the correct statement concerning periodic and perpetual inventory systems.

A) Only the periodic system requires a physical count once per year
B) The balance in the inventory account is known twice per fiscal year under the periodic system
C) Both systems provide a means of estimating shrinkage loss
D) Only the periodic system ever requires an adjusting entry at the end of each year after the physical count