Periodic Inventory System Law and Legal Definition
Periodic inventory system is a method of valuing inventory for financial reporting purposes. In this method physical count of the inventory is performed at specific intervals. A day-to-day record of inventory changes is not required under this system. Under this system track recording of the inventory is done at the beginning of a period, the purchases made and the sales during the same period is recorded under the asset section of the balance sheet. Costs of materials used and costs of goods sold cannot be calculated until ending inventories.
Legal Definition list
Related Legal Terms
- 9-1-1 System
- Accelerated Cost Recovery System
- Active Inventory [Energy]
- Active Solar System
- Actuarially Sound Retirement System
- Adaptive Ecosystem Management
- Administrative Governor [Federal Reserve System]
- Adoption and Foster Care Analysis and Reporting System (AFCARS)
- Advanced Automobile Propulsion System
- Advanced Truck Stop Electrification System
