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.

Question

Quizplus · Accepted Answer

A perpetual inventory system has all of the mentioned characteristics. It allows management to have a real-time view of the inventory levels, updates inventory and cost of goods sold accounts when purchases are made, and automatically adjusts inventory levels and cost of goods sold accounts upon a sale.

Which of the Following Are Characteristics of a Perpetual Inventory