How Does a Perpetual Inventory System Differ from a Periodic

Multiple Choice

How does a perpetual inventory system differ from a periodic system?

A) Sales are increased only at the end of the accounting period in a perpetual system.
B) Cost of goods sold is increased only after an inventory count in a perpetual system.
C) Inventory is reduced after each sale in a perpetual system.
D) Inventory is increased after each sale in a periodic system.