Question

A perpetual inventory system:

(A) Assures that a company will never run out of inventory

(B) Updates the inventory figures each time a transaction is made

(C) Lasts forever

(D) Requires the company to count inventory at the end of each period

• A. Assures that a company will never run out of inventory
• B. Updates the inventory figures each time a transaction is made
• C. Lasts forever
• D. Requires the company to count inventory at the end of each period

Answer 1

The correct option is B

Updates the inventory figures each time a transaction is made

Answer (B): Updates the inventory figures each time a transaction is made

Explanation: A perpetual inventory framework is a program that constantly assesses your stock dependent on your electronic records, not on actual stock. This framework begins with the gauge from an actual count and updates dependent on purchases made in and shipments made out.