Final answer:
The true statement is that the periodic system uses a purchases account. Modern businesses are more inclined to use a perpetual inventory system due to technological advancements, and inventory controls are important for both systems.
Step-by-step explanation:
The correct answer to the student's question is b. the periodic system uses a purchases account. In the periodic inventory system, businesses do not keep continuous, real-time records of inventory levels. Instead, they calculate the cost of goods sold only at the end of an accounting period by physically counting the inventory. This requires recording purchases in a separate account during the period. In contrast, the perpetual inventory system continuously tracks inventory transactions and cost of goods sold in real time, making it favored by businesses, especially with the advent of sophisticated computer systems.
Statement a is false because, with modern advances in computer and inventory management technology, more businesses are shifting towards the perpetual inventory system due to its real-time tracking and accuracy. Statement c is incorrect as inventory controls are essential for both periodic and perpetual systems to prevent loss and ensure accuracy. Statement d is also false, as the accounting entries indeed vary between the two systems, particularly in how purchases and cost of goods sold are recorded.