Perpetual Inventory
Barron's Finance & Investment Dictionary:
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Perpetual Inventory
inventory accounting system whereby book inventory is kept in continuous agreement with stock on hand; also called continuous inventory. A daily record is maintained of both the dollar amount and the physical quantity of inventory, and this is reconciled to actual physical counts at short intervals. Perpetual inventory contrasts with periodic inventory.
| Perpetual Bond, Perpendicular Spread | |
| Perpetual Warrant, Perquisite |
Investopedia Financial Dictionary:
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Perpetual Inventory
An accounting method of maintaining up-to-date property records that accurately reflect the level of goods on hand.
Investopedia Says:
The current balance of inventory is sustained daily by the addition of inventory to the account when goods are received and the deduction from the account when they are used. This method, as opposed to a yearly or monthly calculation, allows for a company to have more timely and accurate data on inventories.
Related Links:
We go over these methods of calculating this component of the balance sheet, and how the choice affects the bottom line. Inventory Valuation For Investors: FIFO And LIFO
Learn how the CFS relates to the balance sheet and income statement as a part of a company's financial reports. What Is A Cash Flow Statement?
Learn what it means to do your homework on a company's performance and reporting practices before investing. Advanced Financial Statement Analysis
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Barron's Finance & Investment Dictionary
Dictionary of Finance and Investment Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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Mentioned in
Store Cards
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Weighted Average Inventory Method
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Physical Inventory
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Moving Average Inventory Method
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Perpetual Inventory System
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