When a company uses the perpetual inventory method,the inventory account should stay current at all times.

Name: When a company uses the perpetual inventory method,the inventory account should stay current at all times.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

With the perpetual inventory method, the inventory account is updated continuously as goods are bought and sold, which means that the inventory account should always reflect the accurate cost of goods on hand. Therefore, option A is correct.

When a Company Uses the Perpetual Inventory Method,the Inventory Account