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.

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