A perpetual inventory system requires updating of the inventory account only at the beginning of an accounting period.

Name: A perpetual inventory system requires updating of the inventory account only at the beginning of an accounting period.
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Question

Quizplus · Accepted Answer

In a perpetual inventory system, the inventory account is constantly updated (in real time) as goods are bought and sold throughout the accounting period. Therefore, it is not updated only at the beginning of an accounting period.

A Perpetual Inventory System Requires Updating of the Inventory Account