the accuracy of perpetual inventory records may be established, in part, by comparing perpetual inventory records with

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29-11-2022
Business

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the accuracy of perpetual inventory records may be established, in part, by comparing perpetual inventory records with

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HafsaM HafsaM · Answer 1 · 2022-12-03T14:09:18+01:00

The accuracy of perpetual inventory records may be established, in part, by comparing perpetual inventory records with vendor payments.

By recording inventory changes in real-time without the need for a physical inventory, perpetual inventory is a continuous accounting technique that ensures the book inventory properly reflects the actual stock. Using input devices like point-of-sale systems and scanners, warehouses record perpetual inventory.

There are two key advantages of perpetual inventory. It enhances record-keeping procedures and makes determining the cost of items sold over a specific time period easier. Second, it makes it simpler for firms to decide when to place further orders by enabling them to view precise inventories at any given time.

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