Businesses have two options when accounting for inventory -- perpetual and periodic. In a perpetual inventory system, inventory is updated after each sale and purchase transaction through a series of ...

An inventory account must be closed at the end of a company's accounting period. Closing the inventory account allows the company to carry its ending inventory balance forward to the next accounting ...

Financial records don’t just “end” when the fiscal year does. Companies often have a variety of accounts still open and active. To “close the books” on the period and establish the baseline for the ...