Which of These Is Not an Advantage of the Perpetual

question 49

Multiple Choice

Which of these is not an advantage of the perpetual inventory system?

• A) Continuous
• B) Allows stock losses to be identified
• C) Allows cost of sales to be calculated at any time
• D) A stock-take is not required

---

Definitions:

Holding Period

The duration of time an investment is held before being sold.

Modified Duration

A measure that estimates how the price of a bond will change in response to a change in interest rates, adjusting for the bond's yield to maturity.

Convexity

The curvature of the price–yield relationship of a bond.

Yield

The annual percentage yield received from an investment, including interest or dividends, relative to the cost of that investment.