In a perpetual inventory system:

A) Merchandise Inventory is debited every time inventory is purchased.
B) Cost of Goods Sold is credited every time inventory is sold.
C) a physical inventory is never performed.
D) All of the above

Perpetual Inventory System

An inventory system that updates the quantity and cost of inventory immediately following purchase or sale activities.

Merchandise Inventory

Goods and products that a retailer, wholesaler, or distributor holds in stock with the intent to sell them for profit.

Cost of Goods Sold

The total direct costs attributable to the production of goods sold by a company during a specific period.