Which record-keeping concept ensures that every inventory transaction is posted to maintain a current record of inventory?

• A. Perpetual inventory record
• B. Periodic inventory record
• C. Stock ledger
• D. Inventory snapshot

Answer: (A)

The perpetual inventory system is the approach that keeps a current record by updating the inventory balance after every transaction. Each receipt or issue is posted right away, so the on-hand quantity and the associated value are continuously current in the stock ledger. This real-time updating supports accurate stock status, timely replenishment decisions, and proper valuation, since balances never have to wait until a later counting period.

In contrast, a periodic system updates records only at the end of a counting period, so the inventory balance isn’t current during the period and must be derived from physical counts. A stock ledger is the record that holds item-by-item balances within the perpetual system, but the concept being tested is maintaining a continuously current inventory record through ongoing postings. An inventory snapshot is just a point-in-time view, not a continuous updating method.