Asked by Branevi Pakeerathan on Apr 27, 2024
Verified
A perpetual inventory system requires updating of the inventory account only at the beginning of an accounting period.
Perpetual Inventory System
An inventory management system where transactions are recorded in real-time, continuously updating inventory and cost of goods sold balances.
- Identify the variations among several inventory systems and their effects on financial accounts.
Verified Answer
AS
Anthony SandovalMay 01, 2024
Final Answer :
False
Explanation :
In a perpetual inventory system, the inventory account is constantly updated (in real time) as goods are bought and sold throughout the accounting period. Therefore, it is not updated only at the beginning of an accounting period.
Learning Objectives
- Identify the variations among several inventory systems and their effects on financial accounts.
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