Question

Under a perpetual inventory system, a.a physical count is required to determine cost of merchandise on hand b.the purchases returns and allowances account is credited when goods are returned to vendors c.increases in inventory resulting from purchases are debited to Purchases d.accounting records continuously disclose the amount of inventory

Answer 1

Answer:

d.accounting records continuously disclose the amount of inventory

Explanation:

Under the perpetual inventory system, an entity continually updates its inventory records to account for additions to and subtractions from inventory for such activities as:

Received inventory items

Goods sold from stock

Items moved from one location to another

Items picked from inventory for use in the production process

Items scrapped