As a perpetual inventory system continuously updates the inventory account, a physical inventory count is not necessary to prove the inventory records.

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While a perpetual inventory system does update the inventory account continuously, it is still necessary to perform a physical inventory count to verify the accuracy of the inventory records and identify potential discrepancies or errors. This process helps ensure that the financial statements reflect the true value of the company's inventory.

As a Perpetual Inventory System Continuously Updates the Inventory Account