Answer:
a. Each purchase and sale of inventory is recorded in the inventory account .
Explanation:
There are two main methods of recording inventory, periodic and perpetual.
Under periodic, inventory is recorded and updated after a certain defined period, for example, end of every week.
Under perpetual inventory system, the inventory is recorded as and when it is sold or purchased, it is updated each moment.
Therefore, statement a representing that under perpetual system the record of inventory is up to date, and represents the correct and accurate picture of inventory is correct.
