Question

A perpetual inventory system Group of answer choices1. calculates cost of goods sold at the end of an accounting period is not real. 2. companies only use a periodic inventory system3. calculates cost of goods sold each time a sale occurs 4. is not used by most companies

Answer 1

Answer:

The answer is: Calculates the cost of goods sold each time a sale occurs

Explanation:

A perpetual inventory system is a process of accounting for inventory that utilises real-time data of sales and purchases to update the inventory valuation. This is a more detailed approach to accounting for inventory as the stock on hand and cost of sales can be accurately reflected in the financial records immediately after the sale occurs. The contrast of this is the periodic system which keeps track of inventory on hand by conducting physical stock counts.