A perpetual inventory system

A) usually maintains inventory records only in terms of physical units on hand.
B) uses a purchases account to record additions to inventory.
C) eliminates the need to periodically take a physical inventory count.
D) keeps a running record of the amount of inventory on hanD.

Perpetual Inventory System

A bookkeeping approach that immediately logs the buying or selling of inventory via computerized point-of-sale systems and enterprise asset management software.

Physical Units

A method of measuring production or inventory in terms of actual physical items or volumes, rather than monetary value or time.

Inventory Records

Documentation and tracking of a company's stock of goods or materials, essential for managing inventory levels and financial reporting.