Question

Which inventory system lets a company know exactly how much of a product is in inventory at any point in time?

• A. Periodic
• B. Perpetual
• C. GAAP
• D. All of these

Answer 1

The correct option is B

Perpetual

Answer (B): Perpetual

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.

Also see:

• MCQs on GAAP
• Difference Between GAAP and IFRS