What is the main benefit of the perpetual inventory system? - ProProfs Discuss
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What is the main benefit of the perpetual inventory system?



A. Does not require a physical count of the ending inventory.
B. Provides a continuous record of inventory on hand.
C. Provides a continuous record of inventory on hand.
D. Is not required by GAAP.

This question is part of Accounting 201 - Chapter 6
Asked by Jc, Last updated: Feb 01, 2020

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2 Answers

f.Brian

F.Brian

Answered Jan 19, 2018

The main benefit of the perpetual inventory system is that it provides a continuous record of the inventory on hand. Accounting, also referred to as accountancy is a study which deals with the measuring, the processing, and the flow of financial information regarding businesses and corporations. The base to this field as laid down by Luca Pacioli who was an Italian Mathematician.

Accounting is also called as the language of businesses which is extremely crucial for businesses to thrive. Accounting is generally used to measure the financial activity of a business overtime, or its economic contributions over years. The time however, is a variable.

 

John Smith

John Smith

Answered Dec 09, 2016

Provides a continuous record of inventory on hand.
 

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