alleryPerpetual inventory system differs from periodic in that it:
AMaintains continuous ledger
BRequires no physical count
CAvoids any closing stock count
DDisallows any storage cost
Answer & Solution
Correct answer: A. Maintains continuous ledger
1. Perpetual system records each receipt and issue continuously in an inventory ledger.
2. Closing inventory is the balancing figure from the ledger; physical checks reconcile periodically.
3. Periodic system, by contrast, relies on counting at period end only.
_Source: ICAI BoS Foundation Paper 1, Ch 4 "Inventories", §4.2 ¶1_
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