​What are the key risks that can occur while using the periodic and perpetual in


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What are the key risks that can occur while using the periodic and perpetual inventory methods? Explain

Nov 3rd, 2014

  • Accounts. Under the perpetual system, there are continual updates to either the general ledger or inventory journal as inventory-related transactions occur. Conversely, under a periodic inventory system, there is no cost of goods sold account entry at all in an accounting period until such time as there is a physical count, which is then used to derive the cost of goods sold.
Reference:

http://www.accountingtools.com/questions-and-answers/what-is-the-difference-between-the-periodic-and-perpetual-in.html


Nov 3rd, 2014

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