Accounting for IGCSE & O level - Final Statements (Section 2 - No. 1)

What is the main difference between a periodic and perpetual inventory system?

A periodic system tracks inventory continuously, while a perpetual system does not.

A perpetual system tracks inventory continuously, while a periodic system does not.

A periodic system values inventory, a perpetual system does not.

They both track the same information with no differences.

Perpetual systems track inventory constantly, while periodic systems update periodically.