Question

A periodic system of inventory:
A. reduces record keeping.
B. increases record keeping.
C. increases the cost of maintaining inventory.
D. eliminates the need for a physical count.

Answer 1

Answer:

A. reduces record keeping.

Explanation:

A periodic system of inventory can be defined as a method of financial accounting, that typically involves updating informations about an inventory on a periodic basis (at specific intervals) as the sales or purchases are being made by the customers, through the use of either an enterprise management software applications or a digitized point-of-sale equipment.

Hence, a periodic system of inventory reduces record keeping because there's no continuous records in real-time of the amount of inventory sold or purchased by the customers.