When using the perpetual inventory method,
A) physical inventories are never taken.
B) day-to-day information about the quantity of merchandise on hand is not available.
C) it is not necessary to show the minimum balance on stock records.
D) a physical inventory should be taken at the end of the fiscal year.

Question

Quizplus · Accepted Answer

The perpetual inventory method involves continuously updating inventory records, including purchases and sales. However, a physical inventory count is still necessary at the end of the fiscal year to verify the accuracy of these records and adjust for discrepancies such as theft, loss, or damage.

When Using the Perpetual Inventory Method