Asked by
Tyler Madison
on Oct 16, 2024
Verified
The physical count of inventory is used to adjust the Inventory account balance to the actual inventory available.
Physical Count
A manual inventory verification process where actual items are counted to ensure records match.
Inventory Account
A balance sheet account containing the cost of goods a company holds for sale in the ordinary course of business.
- Appreciate the consequences of errors in inventory on financial reporting and the essential role of physical inventory audits.
Verified Answer
DC
Learning Objectives
- Appreciate the consequences of errors in inventory on financial reporting and the essential role of physical inventory audits.
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