Asked by Alexis Shyanne on Jun 14, 2024
Verified
Under the _____ inventory method, accounting records maintain a continuously updated inventory value.
A) retail
B) periodic
C) physical
D) perpetual
Perpetual inventory method
An accounting method where inventory levels are updated in real-time with each sale and purchase, providing a continuous record of inventory balances.
Inventory method
An accounting approach used to value and manage the inventory of a business, including FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and average cost methods.
Updated inventory value
The revised total cost or market value of all inventory items a company holds, adjusted for additions, subtractions, and valuation changes over a specific period.
- Contrast the perpetual and periodic approaches to inventory systems and their influence on the assessment of inventory value.
Verified Answer
Learning Objectives
- Contrast the perpetual and periodic approaches to inventory systems and their influence on the assessment of inventory value.
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