A perpetual inventory system
A)usually maintains inventory records only in terms of physical units on hand.
B)uses a purchases account to record additions to inventory.
C)eliminates the need to periodically take a physical inventory count.
D)keeps a running record of the amount of inventory on hanD.

Question

Quizplus · Accepted Answer

A perpetual inventory system keeps a running record of the amount of inventory on hand, eliminating the need to periodically take a physical inventory count. It also records additions to inventory directly to the inventory account, not to a purchases account.

A Perpetual Inventory System