Which of the following does not correctly describe a perpetual inventory accounting system?
A)In a perpetual system cost of goods sold are calculated every time a sale is made.
B)In a perpetual system, 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
D)In a perpetual system, assuming a FIFO cost flow, the cost of goods sold would equal those from a 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, loss, or damage.

Which of the Following Does Not Correctly Describe a Perpetual