Perpetual Inventory Versus Periodic plus Example

IN this session, I discuss the perpetual inventory system as compared to the periodic system. ✔️Check my website for additional resources: ✅ https://farhatlectures.com/ 0:00 Introduction Inventory Defined ([0:16]-[1:25]): Inventory is anything a company holds for resale to make a profit, including goods purchased (like in supermarkets) or manufactured (like cars). Inventory as a Current Asset ([2:11]-[3:11]): Inventory is a current asset because companies expect to sell it within one operating cycle or one year. Types of Inventory for Manufacturers ([4:55]-[6:29]): Tesla, as an example, maintains four inventory accounts: raw materials, work in process, finished goods, and service parts. Inventory Flow ([6:50]-[10:25]): Beginning inventory plus purchases equals goods available for sale. These goods are then split between ending inventory and cost of goods sold. Perpetual vs. Periodic Inventory Systems ([13:06]-[17:43]): Perpetual systems continuously update inventory records, while periodic systems update inventory periodically through physical counts. Inventory Adjustments ([25:25]-[28:34]): Adjustments are made when physical inventory counts differ from records due to theft, breakage, or errors. #cpaexam #accountingtutorial #accountingeducation #accounting