Question

The inventory system whereby the merchandise inventory account balance is merely a record of the most recent physical inventory count is called the:

Answer 1

The inventory system whereby the merchandise inventory account balance is merely a record of the most recent physical inventory count is called the periodic system. The periodic inventory system is a method of accounting for merchandise inventory in which the cost of the inventory sold is determined only at the end of an accounting period.
The updates in this system are made on a periodic basis.