The business that uses a perpetual inventory method is a boat store. The Option A is correct.
In accounting, a perpetual inventory refers to a method that continuously records inventory changes in real time with computerized point-of-sale systems, removing need for physical inventory checks.
The method of Perpetual Inventory provides a high detailed view of changes in inventory with an immediate reporting of the amount of inventory in stock, and accurately reflects the level of goods on hand. As such, a company makes no effort at keeping detailed inventory records of products on hand; rather, the purchases of goods are recorded as a debit to the inventory database.
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