In a perpetual inventory system, a separate account is maintained for each separate inventory item. These separate accounts are referred to as
A) contra accounts.
B) subsidiary accounts.
C) control accounts.
D) purchase accounts.

Question

Quizplus · Accepted Answer

Subsidiary accounts are used in a perpetual inventory system to track the quantity and cost of each separate inventory item. This allows for detailed record-keeping and management of inventory levels.

In a Perpetual Inventory System, a Separate Account Is Maintained