When an inventory system updates the Inventory account after each sale or purchase of merchandise,this is known as a(n)
A)periodic system.
B)inventory costing system.
C)perpetual system.
D)accrual system.

Question

Quizplus · Accepted Answer

A perpetual system updates the Inventory account after each sale or purchase of merchandise in real-time, whereas a periodic system updates inventory accounts only periodically, usually at the end of a particular accounting period. Therefore, the best choice is C, the perpetual system.

When an Inventory System Updates the Inventory Account After Each