Asked by alonna michaux on Jun 29, 2024
Verified
Under a perpetual inventory system, the amount of each type of merchandise on hand is available in the
A) customer's ledger
B) creditor's ledger
C) inventory ledger
D) purchase ledger
Perpetual Inventory System
An inventory tracking system that updates the balance of inventory continuously with each sale or purchase.
Inventory Ledger
A document or system that tracks the quantities, costs, and types of a company's inventory on hand, including goods in transit and on order.
- Gain insight into the critical aspects and constituents of inventory control mechanisms, which include conducting physical stocktakes and utilizing organizational documents.
Verified Answer
CM
Claire ManciniJul 05, 2024
Final Answer :
C
Explanation :
Under a perpetual inventory system, the amount of each type of merchandise on hand is continuously updated in the inventory ledger, which is used to track inventory levels and make informed business decisions. The customer's ledger, creditor's ledger, and purchase ledger contain information about sales and purchases but do not provide real-time updates on inventory levels.
Learning Objectives
- Gain insight into the critical aspects and constituents of inventory control mechanisms, which include conducting physical stocktakes and utilizing organizational documents.
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