Explain about perpetual inventory procedure, Accounting Basics

Assignment Help:

Q. Explain about perpetual inventory procedure?

When discussing inventory we require clarifying whether we are referring to the physical goods on hand or the Merchandise Inventory account which is the financial representation of the physical goods on hand. The difference between periodic and perpetual inventory procedures is the frequency with which the Merchandise Inventory account is updated to reflect what is physically on hand. Under perpetual inventory procedure the Merchandise Inventory account is endlessly updated to reflect items on hand. For instance your supermarket uses a scanner to ring up your buy. While your box of Rice Krispies crosses the scanner the Merchandise Inventory account demonstrate that one less box of Rice Krispies is on hand.


Related Discussions:- Explain about perpetual inventory procedure

Bank reconciliation, hello, i am in Malaysia and try to reconcile a bank st...

hello, i am in Malaysia and try to reconcile a bank statement in USD. I am confuse on which currency should i follow to enter the bank transactions. If follow in USD, i could not

Accounting theory, Hi i just need the solution of case study.

Hi i just need the solution of case study.

Describe about post-closing trial balance, Q. Describe about post-closing t...

Q. Describe about post-closing trial balance? A post-closing trial balance is trial balances taken subsequent to the closing entries have been posted. The only accounts that mu

Calculate time value of money, Mr. Horace, aged 25, has $25,000 cash to inv...

Mr. Horace, aged 25, has $25,000 cash to invest for his retirement. In addition, he plans to save and invest $8,000 per year (at the end of every year) for the next 40 years, at wh

The type of accounting concerned with providing information, The type of ac...

The type of accounting concerned with providing information and analyses to managers within the organization is referred to as

Show accumulated depreciation account with example, Q. Show Accumulated dep...

Q. Show Accumulated depreciation account with example? Micro Train credits the depreciation amount to an accumulated depreciation account which is a contra asset rather than di

5 multiple choice questions, 1. PDQ Corp. has sales of $4,000,000; the firm...

1. PDQ Corp. has sales of $4,000,000; the firm''s cost of goods sold is $2,500,000; and its total operating expenses are $600,000. The firm''s interest expense is $250,000, and the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd