Which of the Following Is Not an Advantage of a Perpetual

question 52

Multiple Choice

Which of the following is not an advantage of a perpetual inventory system?

• A)assists in the prevention of stockouts
• B)requires less data processing effort than periodic systems
• C)maintains up-to-date inventory and cost of goods sold balances
• D)provides evidence of inventory shrinkage

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Definitions:

Death Of A Customer

Refers to the situation where a business loses a customer due to their passing away, which can have financial and operational impacts.

Authority To Accept

The legal power or permission given to an individual or entity to agree to the terms of a contract on behalf of another.

Depositary Bank

The first bank to receive a check for payment.

Check Is Drawn

The process by which a check is issued by an account holder, instructing their bank to pay a specified sum to a party named on the check.