What are the two main inventory accounting systems?

The two main inventory accounting systems are the periodic inventory system and the perpetual inventory system. The periodic system updates inventory records at specific intervals, such as monthly or annually, relying on physical counts to determine stock levels. In contrast, the perpetual system continuously updates inventory records in real-time with each purchase and sale, providing a more accurate and immediate view of inventory levels. Each system has its advantages and is chosen based on the business's needs and operations.