When a Company Uses a Perpetual Inventory System,all Merchandise Transactions

question 8

True/False

When a company uses a perpetual inventory system,all merchandise transactions are updated as they occur.However,the inventory account may not show the correct balance at all times.

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Definitions:

Buffer

A temporary storage area used to manage data transfer between devices or processes that operate at different speeds or with different priorities.

Explanation

A statement or account that makes something clear by describing it in more detail or revealing relevant facts.

Positive Statement

A factual assertion that can be tested or verified, often used in economics to describe how the world is, as opposed to how it should be.

Indirect Approach

A communication method where the main point or message is not directly stated at the beginning, often used in writing or speech to build suspense or be polite.