Inventory system that updates the inventory account for every purchase and sale transaction.
A)Credit terms
B)FOB destination
C)FOB shipping point
D)Periodic inventory system
E)Perpetual inventory system
F)Inventory shrinkage
G)Single-step income statement
H)Multiple-step income statement

Perpetual Inventory System

An accounting method that continuously adjusts for inventory additions and subtractions, providing a real-time view of inventory levels.

Inventory Account

An account in the ledger that tracks the value of a company's inventory through various stages of production, from raw materials to finished goods.