Which of the following does NOT correctly describe a perpetual inventory system?
A)Cost of goods sold is calculated every time a sale is made.
B)Assuming shrinkage of zero, inventory and cost of goods sold do not have to be updated
At the end of the period.
C)The use of this system eliminates the requirement for an annual physical inventory count.
D)Assuming a FIFO cost flow, cost of goods sold would equal that calculated by the periodic
System.

Question

Quizplus · Accepted Answer

A perpetual inventory system still requires periodic physical inventory counts to verify records and account for discrepancies such as theft or loss.

Which of the Following Does NOT Correctly Describe a Perpetual