Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Perpetual Inventory - Purchases

Financial Accounting

4. Merchandising Operations

Perpetual Inventory - Purchases

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Multiple Choice

The perpetual inventory system is also known as what type of review system?

Annual review system

Random review system

Periodic review system

Continuous review system

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Verified step by step guidance

Understand the concept of a perpetual inventory system: It is a system where inventory records are updated continuously as transactions occur, such as sales, purchases, or returns.

Recognize the key feature of the perpetual inventory system: It provides real-time tracking of inventory levels, ensuring that the inventory data is always current.

Compare the perpetual inventory system to other review systems: Unlike periodic review systems, which update inventory records at specific intervals, the perpetual system updates records immediately after each transaction.

Identify the term that aligns with the perpetual inventory system: Since it involves continuous updates, it is referred to as a 'Continuous review system.'

Conclude that the perpetual inventory system is synonymous with the continuous review system, as both emphasize real-time inventory tracking and management.