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Which statement is correct about the system used to account for inventories? The perpetual system is used to determine the amount of inventory and
Which statement is correct about the system used to account for inventories? The perpetual system is used to determine the amount of inventory and the periodic system is used to determine the cost of goods sold. The perpetual and periodic systems are both acceptable methods to account for inventories. Organizations must use the perpetual system to determine the amount of inventory and cost of goods sold. The balance sheet under the perpetual system is different than that under the periodic system.
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