Perpetual Inventory

An accounting method of maintaining up-to-date property records that accurately reflect the level of goods on hand.

Investopedia Commentary

The current balance of inventory is sustained daily by the addition of inventory to the account when goods are received and the deduction from the account when they are used. This method, as opposed to a yearly or monthly calculation, allows for a company to have more timely and accurate data on inventories.

Related Links

Inventory Valuation For Investors: FIFO And LIFO
What Is A Cash Flow Statement?
Advanced Financial Statement Analysis

See also: Carrying Cost of Inventory, Inventory, Inventory Turnover