Question

A perpetual inventory system will always give updated balances for: A. Goods Available for Sale and Sales Revenue. B. Inventory and Sales Revenue. C. Inventory and Cost of Goods Sold. D. Accounts Receivable and Inventory.

Answer 1

The correct option is C. Inventory and Cost of Goods Sold.

Step-by-step explanation:

A perpetual inventory system is a type of inventory management that tracks real-time stock receipts and sales using technology such as enterprise asset management software and computerized point-of-sale systems.

In a perpetual inventory system, the balances of Merchandise Inventory and Cost of Goods Sold are updated whenever a sale occurs.

Therefore, the correct option is C. Inventory and Cost of Goods Sold.