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ACCA Knowledge Level Periodic Inventory System — practice questions

Explore 1 free Periodic Inventory System questions in ACCA Knowledge Level Financial Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Periodic Inventory System questions and exercises with answers

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Under the PERIODIC inventory system, which account records the acquisition of merchandise bought for resale during the period?Read the answer and worked solution →

Worked practice questions

Under the PERIODIC inventory system, which account records the acquisition of merchandise bought for resale during the period?

  1. Purchases
  2. Merchandise Inventory
  3. Cost of Sales
  4. Freight-in
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Correct answer: A. Purchases

1. Under the periodic system, four temporary accounts replace Merchandise Inventory during the period. 2. Acquisitions of goods for resale are recorded in the Purchases account. 3. Merchandise Inventory is adjusted only at period end under the periodic system. 4. Cost of Sales is calculated at period end, and Freight-in records inbound transport, not the goods themselves. _Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §3.5 "Basic Merchandising Transactions (Periodic Inventory System)", p.105_

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