Asked by Sonja Knezic on Jul 19, 2024
Verified
In a perpetual inventory system, the Inventory account is only used to reflect the beginning inventory.
Perpetual Inventory
An inventory tracking system that records the sale or purchase of inventory immediately through the use of computerized systems.
Beginning Inventory
The value of goods available for sale at the start of an accounting period, carried over from the end of the previous period.
- Establish the differences between never-ending and regularly occurring inventory systems, including their specific financial record-keeping activities.
Verified Answer
SS
sai sharanam anuguJul 24, 2024
Final Answer :
False
Explanation :
In a perpetual inventory system, the Inventory account is constantly updated with each purchase, sale, and return of inventory. Therefore, it is not just used to reflect the beginning inventory, but also the current inventory value.
Learning Objectives
- Establish the differences between never-ending and regularly occurring inventory systems, including their specific financial record-keeping activities.
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