Questions: Which of the following is an example of perpetual inventory? a.) A jewelry store's computer system updates inventory electronically after each sale. b.) A butcher shop updates its inventory each night after closing. c.) A car dealership updates its inventory with a physical count of each car on the lot. d.) A bookstore updates inventory records at the end of each quarter.

The answer is the first one (a): A jewelry store's computer system updates inventory electronically after each sale.

Explanation for each option:

a.) A jewelry store's computer system updates inventory electronically after each sale.

• This is an example of a perpetual inventory system. In a perpetual inventory system, inventory records are updated continuously as transactions occur, providing real-time inventory levels.

b.) A butcher shop updates its inventory each night after closing.

• This is not a perpetual inventory system. Instead, it resembles a periodic inventory system where updates are made at specific intervals, not continuously.

c.) A car dealership updates its inventory with a physical count of each car on the lot.

• This is an example of a periodic inventory system. Physical counts are typically associated with periodic systems, where inventory is updated at specific times rather than continuously.

d.) A bookstore updates inventory records at the end of each quarter.

• This is also an example of a periodic inventory system. Updating inventory records at the end of each quarter indicates that updates are made periodically, not continuously.

In summary, option (a) is the correct example of a perpetual inventory system, as it involves continuous updating of inventory records.