Asked by courtney laverty on Jul 17, 2024
Verified
When a sale occurs under a perpetual inventory system,
A) a decrease in cost of goods sold is recorded.
B) a increase in inventory is recorded.
C) a decrease in accounts receivable is recorded.
D) a decrease in quantity is recorded.
Perpetual Inventory System
A perpetual inventory system is a method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.
- Comprehend how inventory transactions affect the cost of goods sold.
- Chronicle transactions pertaining to buys, sells, and revocations within an unending inventory system.
Verified Answer
MB
Mohamed Badr El NemrJul 18, 2024
Final Answer :
D
Explanation :
Under a perpetual inventory system, each sale immediately results in a decrease in the quantity of inventory, as the system continuously updates inventory levels.
Learning Objectives
- Comprehend how inventory transactions affect the cost of goods sold.
- Chronicle transactions pertaining to buys, sells, and revocations within an unending inventory system.
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