Which of the following is a characteristic of a perpetual inventory system?
A) Inventory purchases are debited to a Purchases account.
B) Inventory records are not kept for every item.
C) Cost of goods sold is recorded with each sale.
D) Cost of goods sold is determined as the amount of purchases less the change in inventory.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, cost of goods sold is recorded with each sale. This means that each time a sale is made, the cost of the goods sold is immediately recorded and deducted from the inventory on hand. This allows for up-to-date and accurate tracking of inventory levels and cost of goods sold.

Which of the Following Is a Characteristic of a Perpetual