Under a perpetual inventory system

A) accounting records continuously disclose the amount of inventory
B) increases in inventory resulting from purchases are debited to Purchases
C) there is no need for a year-end physical count
D) the purchases returns and allowances account is credited when goods are returned to vendors

A perpetual inventory system involves maintaining up-to-date records of inventory levels, which are continuously available to the company. This means that the amount of inventory on hand is always known, as well as any changes in inventory due to purchases, sales, or returns. Therefore, option A is correct as it correctly defines the characteristic of perpetual inventory systems. Options B, C, and D are incorrect as they describe accounting tasks that may occur under a perpetual inventory system but do not define the system itself.