Asked by Surprise Bahati Mutunwa on May 09, 2024
Verified
A perpetual inventory system continually updates accounting records for merchandising transactions.
Perpetual Inventory
An inventory management system where inventory levels are updated in real-time following each purchase or sale.
Merchandising Transactions
Transactions that involve the buying and selling of merchandise, crucial for businesses in the retail sector to generate revenue.
- Differentiate between the periodic and perpetual inventory systems and their implications for managing inventory.
Verified Answer
LA
Lessly AlanisMay 13, 2024
Final Answer :
True
Explanation :
A perpetual inventory system keeps a running record of inventory balances and updates them with every transaction, allowing for real-time tracking of inventory.
Learning Objectives
- Differentiate between the periodic and perpetual inventory systems and their implications for managing inventory.
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