Which of the following statements about perpetual inventory systems is not true?

A physical inventory is taken to determine any discrepancies between the recorded inventory amount and the amount that

is actually on hand.

The cost of goods sold is determined each time a sale occurs.

The cost of goods sold is determined by subtracting the cost of goods on hand from the cost of goods purchased for the

period.

Detailed records of the cost of each inventory purchase and sale are maintained.