Under the perpetual inventory system, inventory shifts from an asset to an expense when the seller delivers the goods to the buyer.

Name: Under the perpetual inventory system, inventory shifts from an asset to an expense when the seller delivers the goods to the buyer.
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Question

Quizplus · Accepted Answer

Under the perpetual inventory system, inventory is continuously updated, and when goods are delivered to the buyer, the cost of goods sold is recorded as an expense, reducing the inventory asset.

Under the Perpetual Inventory System, Inventory Shifts from an Asset