Final answer:
The claim about the periodic inventory system is false; inventory updates in such a system occur at the end of the accounting period, not the beginning, following a physical count.
Step-by-step explanation:
The statement that a periodic inventory system requires updating of the inventory account only at the beginning of an accounting period is false. In a periodic inventory system, the inventory account is updated at the end of the accounting period, not the beginning. This is when a physical count is conducted to determine the ending inventory balance, and the cost of goods sold is calculated for the period.
This system contrasts with the perpetual inventory system where inventory and cost of goods sold accounts are continuously updated with each transaction throughout the accounting period. The periodic system is typically used by smaller businesses or those with less complex inventory systems, while larger businesses with more complex operations often use the perpetual system for real-time inventory tracking.