The inventory system that uses the merchandise inventory account as an active account and updates...
Question:
The inventory system that uses the merchandise inventory account as an active account and updates it with every purchase and sale is called:
a. LIFO
b. perpetual
c. FIFO
d. Periodic
Inventory:
One of the most valuable resources, or assets, that a company has in their financial records is inventory, also considered merchandise inventory, work-in-process, finished goods inventory, and raw materials inventory.
Answer and Explanation: 1
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View this answerAnswer choice: b. perpetual
Explanation:
A perpetual inventory system uses the inventory account as an active account and updates it with each...
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What Is Inventory? - Definition & Example
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Chapter 13 / Lesson 7
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Learn what inventory in business is. Find out three types of inventory management systems and the benefits of each. Understand inventory management through examples.
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