A perpetual inventory system: a) Requires a computer system to handle all of the transactions. b) Updates the inventory balances every period (say every week). c) Tracks inventory balances with every receipt and every withdrawal of inventory. d) Updates inventory balances almost every second of every day.

In this case, the correct answer would be option c) given in the answer options or Tracks inventory balances with every receipt and every withdrawal of inventory.

Explanation:

In Accounting and Economics, perpetual inventory system involves the calculation or updation of the inventory count or record for every individual individual inventory transaction.Whenever a good is withdrawn or purchased from the inventory or dded to the inventory for later purchase or consumption, it is immediately recorded or updated under a perpetual inventory system.Hence, perpetual inventory system requires the updates of the inventory record or count immediately after any good is purchased, sold or added into the inventory.The final sale of any good from the inventory is recorded as a sales revenue for the concerned firm or company and any purchase of any good by the company for future sale which is added into the inventory is generally recorded as the cost of goods sold account.

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