Taking a physical count of inventoryA) is not necessary when a periodic inventory system is usedB) should be done near year-endC) has no internal control relevanceD) is not necessary when a perpetual inventory system is used

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Annalyse Harrington · Accepted Answer

Final Answer : B, Explanation :  Taking a physical count of inventory should be done near year-end to ensure that the inventory balance reported in the financial statements is accurate. This count helps identify any discrepancies between the physical count and the balance in the inventory account, which can help improve internal controls. While a periodic inventory system may require a physical count of inventory at the end of the period to determine cost of goods sold, a perpetual inventory system still requires periodic physical counts to ensure accuracy.

Taking a physical count of inventory

A) is not necessary when a periodic inventory system is used
B) should be done near year-end
C) has no internal control relevance
D) is not necessary when a perpetual inventory system is used

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