Multiple choice technology packaged enterprise solutions

Inventory Items can be Accrued at

  1. Period End

  2. Afer period End

  3. At receipt

  4. Closing of period end
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C Correct answer
Explanation

Inventory items are accrued at receipt, not at period end. Accrual happens when goods are received to match expense recognition with the receipt of inventory.

AI explanation

Inventory (asset) items are accrued at the time of receipt because their cost needs to hit the inventory valuation account immediately when goods arrive, supporting perpetual inventory accounting. This is different from expense-destination items, which are typically accrued only at period end via the Receipt Accrual - Period End process. Since the question specifies Inventory items, "At receipt" is the correct timing.

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