Here is a preview of the article you requested. Please login to view the entire article.
If your business has inventory, it will be required to keep its accounting
records on the accrual method. You can select
from several ways to compute your inventory, but once you make a selection, you
cannot change the method without a good reason.
Periodic vs Perpetual
Inventory Method
There are two different choices to make in deciding how
to account for your inventory. The first is to decide if you will use the
periodic inventory method or the perpetual inventory method.
Under the periodic inventory method the units of inventory sold
are not subtracted from the inventory list of units available until the end of
the fiscal period. With the perpetual inventory method, every time there is a
sale, the units sold...