1- perpetual inventory system continually updates inventory records True Fales? 2- A company can change from...

1- perpetual inventory system continually updates inventory records True Fales?

2- A company can change from lifo to fifo without notifying the internal revenue service False True?

Expert Solution

1- Perpetual inventory system continually updates inventory records?

This statement is True.

As perpetual inventory system is built on the technology which records the real time transactions as and when the transactions takes place.
It continually updates inventory records from time to time as it is automated with the company's accounting system.

2- A company can change from lifo to fifo without notifying the internal revenue service?

This statement is False.

As change from lifo to fifo is a major change of accounts of inventory control and this change is always required to be disclosed in the financial statements.

Also a prior authorization from internal revenue service is required for such change in accounting.

So, a company can change from lifo to fifo without notifying the internal revenue service.

ekkarill92 answered 2 years ago

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