Which of the following statements about the perpetual inventory control method is NOT true?
A) When a sale is made,cost of goods sold is increased.
B) When inventory is purchased,it is treated as an expense.
C) A separate record is kept for each item of inventory.
D) An inventory count can reveal inventory losses.

Question

Quizplus · Accepted Answer

When inventory is purchased, it is not treated as an expense under perpetual inventory control. Instead, it is recorded as an increase in the inventory asset account. The cost of goods sold is only recorded when the inventory is sold.

Which of the Following Statements About the Perpetual Inventory Control