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

Question

Quizplus · Accepted Answer

While a perpetual inventory system does update the inventory account continuously, a physical inventory count is still necessary to prove the accuracy of the inventory records and to identify any discrepancies between the physical count and the recorded amounts. This allows for adjustments to be made and any potential losses or fraud to be identified.

Since a Perpetual Inventory System Continuously Updates the Inventory Account,a