A company would be more likely to know the amount of inventory on hand if it used the perpetual inventory system rather than the periodic inventory system.

Question

Quizplus · Accepted Answer

The perpetual inventory system continuously updates inventory balances after each transaction, providing real-time information on the amount of inventory on hand. In contrast, the periodic system requires a physical count at the end of a certain period to determine the amount of inventory on hand, which may not accurately reflect the current inventory levels during the period.

A Company Would Be More Likely to Know the Amount