In a perpetual inventory system the flow of inventory cost is first through the statement of financial position then through the income statement.

Name: In a perpetual inventory system the flow of inventory cost is first through the statement of financial position then through the income statement.
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In a perpetual inventory system, the inventory cost flows first through the statement of financial position (balance sheet) as an asset and then through the income statement as cost of goods sold.

In a Perpetual Inventory System the Flow of Inventory Cost