In a perpetual inventory system,a business maintains a continuous record of the number of units purchased,sold and on hand for each inventory item.

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In a perpetual inventory system, the inventory records are updated continuously, providing a real-time view of the inventory levels for each inventory item. This is in contrast to a periodic inventory system, where the inventory levels are updated periodically, such as at the end of each month or quarter.

In a Perpetual Inventory System,a Business Maintains a Continuous Record