Asked by Lindsay Stavnes on Jul 28, 2024
Verified
A business using the perpetual inventory system, with its detailed subsidiary records, does not need to take a physical inventory.
Perpetual Inventory System
A perpetual inventory system continuously tracks inventory levels and costs, updating records with each receipt or sale of goods.
Physical Inventory
The process of counting by hand the actual inventory that a company holds in its premises, as opposed to counting based on purchase and sale records.
- Learn the fundamentals and importance of operating a perpetual inventory system, including the approaches to returns and the determination of the cost of goods sold.
Verified Answer
ZK
Zybrea KnightAug 04, 2024
Final Answer :
False
Explanation :
Even with the perpetual inventory system, physical inventory is still necessary to verify the accuracy of the records and identify any discrepancies.
Learning Objectives
- Learn the fundamentals and importance of operating a perpetual inventory system, including the approaches to returns and the determination of the cost of goods sold.
Related questions
Because Many Companies Use Computerized Accounting Systems, Periodic Inventory Is ...
If the Perpetual Inventory System Is Used, an Account Entitled ...
Sales Is Equal to the Cost of Goods Sold Less ...
When Companies Use a Perpetual Inventory System, the Recording of ...
Cost of Goods Sold Is Often the Largest Expense on ...