In a perpetual inventory system:
A)Merchandising transactions are recorded as they occur.
B)No effort is made to record the Cost of Goods Sold until year-end.
C)Entries are made in the Cost of Goods Sold account whenever merchandise is purchased or sold.
D)The need for ever taking physical inventory is eliminated.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, merchandise transactions are recorded as they occur, allowing for immediate tracking of inventory levels and cost of goods sold. This means that there is no need to wait until year-end to record the cost of goods sold, and physical inventory counts are only necessary for verification purposes or in the case of discrepancies.

In a Perpetual Inventory System