Which of the following is a true statement about inventory systems?

Question

Quizplus · Accepted Answer

Perpetual inventory systems require more detailed inventory records as they continuously update inventory balances with each sale and purchase transaction. In contrast, periodic inventory systems only update inventory balances at the end of an accounting period, requiring more detailed physical counts and calculations to determine cost of goods sold. Therefore, option B is the correct choice. Option A is incorrect as it contradicts the above explanation. Option C is incorrect as it describes the process for a periodic inventory system, not a perpetual system. Option D is incorrect as a perpetual system continuously updates cost of goods sold with each transaction, not just at the end of an accounting period.

Which of the Following Is a True Statement About Inventory