As a Perpetual Inventory System Continuously Updates the Inventory Account

question 39

True/False

As a perpetual inventory system continuously updates the inventory account, a physical inventory count is not necessary to prove the inventory records.

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Definitions:

Selling Price

The amount of money a buyer pays to purchase a product or service from a seller.

Average Inventory

A metric that estimates the amount of inventory a business has on hand over a certain period, calculated by taking the sum of the beginning and ending inventory levels divided by two.