Which of the following best describes a running account in inventory management?

A running account in inventory management refers to a dynamic record of merchandise on hand. This means that it continuously updates to reflect real-time changes in inventory levels as items are received or sold. It allows businesses to keep track of how much stock is available at any given moment, which is essential for effective inventory control and management.

Having a running account provides critical insights into inventory turnover, helps prevent stockouts or overstock situations, and supports overall decision-making related to purchasing and sales strategies. This dynamic nature of the account enables companies to maintain accuracy in their inventory records, ensuring that they can respond quickly to demand changes or supply chain disruptions.