Question

If a company uses a periodic inventory system, the shipping records are used to update the inventory quantities.

A) True
B) False

Answer 1

In a periodic inventory system, shipping records are used to update inventory quantities.

Step-by-step explanation:

If a company uses a periodic inventory system, the shipping records are used to update the inventory quantities. This statement is true. In a periodic inventory system, the company does not keep a continuous record of every inventory item. Instead, they only update the inventory quantities periodically, such as during physical inventory counts or at the end of an accounting period.