Under the perpetual inventory system, the balance in the merchandise inventory account is merely a record of the most recent physical inventory account.

Question

Quizplus · Accepted Answer

Under the perpetual inventory system, the balance in the merchandise inventory account is not simply a record of the most recent physical inventory account. Instead, it reflects the continuous updating of inventory quantities and related costs based on each purchase and sale transaction.

Under the Perpetual Inventory System, the Balance in the Merchandise