Which Statement Is Not Correct About the Perpetual Inventory System

question 110

Multiple Choice

Which statement is not correct about the perpetual inventory system for inventory management?

• A)This system keeps track of additions to and withdrawals from inventory.
• B)It is not necessary to conduct an inventory count if the perpetual system is used.
• C)This method produces timely information for management.
• D)With this method, the company knows the inventory on hand and the related cost of goods sold at any point in time.

---

Definitions:

Money Supply

Money Supply refers to the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in checking and savings accounts.

Federal Reserve Board

The governing body of the Federal Reserve System, responsible for overseeing the United States' central banking system and setting monetary policy.

Monetary Policy

Means by which the Fed controls the amount of money available in the economy.