The Main Aspect of the Perpetual Method of Accounting for Inventory

question 39

Multiple Choice

The main aspect of the perpetual method of accounting for inventory is:

• A) a stocktake is performed.
• B) it is useful for high value, low volume items.
• C) cost of sales is calculated at the end of the accounting period.
• D) all movements in each item of stock are tracked via detailed inventory records.

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Definitions:

Stock Prices

The cost of purchasing a share of ownership in a company, which can fluctuate based on market conditions.

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain.

Payment

The transfer of money or goods from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Rent

Payment to resource owners for the use of their natural resources.