When an inventory system updates the Inventory account at the time of each sale, this is known as:
A) a perpetual system
B) an accrual system
C) a periodic system
D) a contra-purchase system

Question

Quizplus · Accepted Answer

A perpetual inventory system updates the inventory account at the time of each sale in real-time, providing accurate and up-to-date inventory levels. Accrual and periodic systems refer to the method of recording expenses and revenues, while a contra-purchase system is not related to inventory accounting.

When an Inventory System Updates the Inventory Account at the Time