In a perpetual inventory system, the Merchandise Inventory account should equal the actual merchandise on hand
A) at all times.
B) only after the physical inventory account has occurred.
C) only at the beginning of the accounting period.
D) only at the end of the accounting period.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, the Merchandise Inventory account is continuously updated for each purchase and sale of merchandise, theoretically ensuring that it reflects the actual merchandise on hand at all times.

In a Perpetual Inventory System, the Merchandise Inventory Account Should