Multiple choice

The difference in the quantity of stock as shown in the books and as lying in the store is taken as _______ in the periodic inventory system.

  1. issue/consumption of goods

  2. loss by theft

  3. closing stock

  4. none of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The difference in the quantity refers to consumption/usage of goods. In perpetual system, it may be considered as loss by theft. It can never be taken as closing stock.

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