In a perpetual inventory system a physical inventory count is: Group of answer choices undertaken periodically to check the accuracy of the perpetual inventory system records. never required as inventory records are continuously updated. to identify losses or theft of inventory. to identify losses or theft of inventory and undertaken periodically to check the accuracy of the perpetual inventory system records.
Question
In a perpetual inventory system a physical inventory count is: Group of answer choices
undertaken periodically to check the accuracy of the perpetual inventory system records.
never required as inventory records are continuously updated.
to identify losses or theft of inventory.
to identify losses or theft of inventory and undertaken periodically to check the accuracy of the perpetual inventory system records.
Solution
In a perpetual inventory system a physical inventory count is:
To identify losses or theft of inventory and undertaken periodically to check the accuracy of the perpetual inventory system records.
Here's why:
Step 1: Understand the Perpetual Inventory System In a perpetual inventory system, inventory quantities are updated continuously in the company's records. This means that every time inventory is purchased, sold, or returned, the Inventory account is updated.
Step 2: Understand the Purpose of a Physical Inventory Count Despite the continuous updating of inventory records in a perpetual system, a physical inventory count is still necessary. This is done to verify the accuracy of the inventory records and to identify any losses or theft of inventory that may have occurred.
So, the correct answer is to identify losses or theft of inventory and undertaken periodically to check the accuracy of the perpetual inventory system records.
Similar Questions
Which inventory system relies on regular physical counts of inventory to determine the ending inventory?Question 7Answera.Periodic inventory systemb.Perpetual inventory systemc.Just-in-time inventory systemd.Economic order quantity (EOQ) system
Perpetual inventory system involves .a.bill of material and material requisition.b.bincard and stores ledger.c.purchase requisition and purchase order.d.inward and outward invoices.
Under a perpetual inventory system: Group of answer choices accounting records continuously record the movement of inventory as it occurs. increases in inventory resulting from purchases are debited to purchases. there is never a need for a year-end physical count. the account purchase returns and allowances is credited when goods are returned to vendors.
The perpetual inventory system is often used by smaller businesses that have easy-to-manage inventory and may not have a lot of money or the opportunity to implement computerized systems into their workflow.Group of answer choicesFalseNo answer text provided.No answer text provided.True
The primary difference between a periodic and perpetual inventory system is that a periodic system: Group of answer choices keeps a record showing the inventory on hand at all times. provides better control over inventories. records the cost of the sale on the date the sale is made. determines the inventory on hand only at the end of the accounting period.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.