Author Question: The primary difference between a periodic and perpetual inventory system is that a a. periodic ... (Read 57 times)

iveyjurea · **on:** Jul 5, 2018

The primary difference between a periodic and perpetual inventory system is that a
a. periodic system determines the inventory on hand only at the end of the accounting period
b. periodic system keeps a record showing the inventory on hand at all times
c. periodic system provides an easy means to determine inventory shrinkage
d. periodic system records the cost of the sale on the date the sale is made

Question 2

Indicate which form of organization is associated with each of the following by putting an X in the appropriate column. More than one form may apply to each.

Characteristics: Sole Proprietorship Partnership Corporation
1. Owners are typically separate from managers and not involved in the day-to-day operations. Thus, managers may make decisions that are not in the best interest of the owner(s).
2. There is double taxation.
3. Ownership is represented by shares of stock.
4. The personal assets of the owners are at risk.
5. The company's distribution of earnings to owners is called dividends.

Kedrick2014 · **Reply #1 on:** Jul 5, 2018

Answer to Question 1

a

Answer to Question 2

Characteristics: Sole Proprietorship Partnership Corporation
1. Owners are typically separate from managers and not involved in the day-to-day operations. Thus, managers may make decisions that are not in the best interest of the owner(s). X
2. There is double taxation. X
3. Ownership is represented by shares of stock. X
4. The personal assets of the owners are at risk. X X
5. The company's distribution of earnings to owners is called dividends. X