Which of the following is true regarding perpetual inventory systems?

Question

Quizplus · Accepted Answer

Perpetual inventory systems require detailed accounting records to be maintained to update inventory accounts when transactions occur in real-time. An end-of-period physical inventory count is not required since inventory accounts are being constantly updated. Choice B is incorrect as an end-of-period physical inventory count is not required. Choice C is incorrect since changes in inventory accounts are posted directly to inventory accounts, not purchases accounts. Choice D is incorrect as perpetual inventory systems actually require less accounting time since inventory accounts are always up to date.

Which of the Following Is True Regarding Perpetual Inventory Systems