Which of the following are characteristics of a perpetual inventory system?
A) Management knows how much inventory is on hand at all times.
B) Purchases of inventory are recorded to the inventory account.
C) The computer tracks inventory upon a sale and the cost of goods and inventory are immediately updated.
D) All of these answer choices are characteristics of a perpetual inventory system.

Question

Quizplus · Accepted Answer

A perpetual inventory system is characterized by continuous tracking of inventory levels, immediate recording of inventory purchases to the inventory account, and automatic updates to inventory and cost of goods sold upon a sale. Therefore, all the listed options (A, B, C) are characteristics of a perpetual inventory system.

Which of the Following Are Characteristics of a Perpetual Inventory