Which of the following statements is true?
A)Inventory data can be identified and controlled better under the perpetual system.
B)Inventory can only be sold at the end of an accounting period under the periodic system.
C)There is no difference in cost to implement a perpetual as compared to a periodic system.
D)The perpetual system eliminated the need for an annual inventory count.

Question

Quizplus · Accepted Answer

Under the perpetual system, inventory data is continually updated and monitored, allowing for better identification and control of inventory. The periodic system, on the other hand, only updates inventory information at the end of an accounting period.

Which of the Following Statements Is True