Asked by KALLA RAJU SRAVAN MS on May 23, 2024
Verified
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.
- Comprehend the difference between a perpetual and periodic inventory system.
Verified Answer
KC
Kaykay Crockett CrockettMay 25, 2024
Final Answer :
D
Explanation :
A perpetual inventory system keeps a running record of the amount of inventory on hand, eliminating the need to periodically take a physical inventory count. It also records additions to inventory directly to the inventory account, not to a purchases account.
Learning Objectives
- Comprehend the difference between a perpetual and periodic inventory system.