Which of the following statements is false regarding a perpetual inventory system:

a) physical counts are never needed since records are maintained on a transaction by transaction basis
b) the balance in the inventory account is updated with each inventory purchase and sale transaction
c) cost of goods sold is increased as sales are recorded
d) the account purchases is not used as inventory is acquired

Statement A is incorrect. There is always a need to do a physical count for inventory, regardless of the method being used.

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Originally Posted by bettyboop13

Which of the following statements is false regarding a perpetual inventory system:

a) physical counts are never needed since records are maintained on a transaction by transaction basis
b) the balance in the inventory account is updated with each inventory purchase and sale transaction
c) cost of goods sold is increased as sales are recorded
d) the account purchases is not used as inventory is acquired

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There is a sticky note that the board does not do homework. I would guess this is homework -

[QUOTE=bettyboop13 disagrees: I have seen others that post similar questions that get answered and by the way this is not for homework it was a general study question[/QUOTE]



Your reddie says that this is not homework, it's study work - but I fail to see the difference between the two.

Here's the "sticky" quote:

"Do NOT ask Homework Help questions here.

We have a separate area for Homework Help under Education.


Posted by site administrator.

Your welcome, betty boop. Don't forget to give me a rating.

Quote:

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Originally Posted by 949

your welcome, betty boop. dont forget to give me a rating.

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She already did - when you first posted the answer. Check your profile.