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