To accurately determine inventory quantities, a company must
A) use the perpetual inventory system.
B) employ an independent company to conduct inventory counts.
C) rely on the warehouse records.
D) take a physical inventory.

Question

Quizplus · Accepted Answer

Taking a physical inventory is essential for accurately determining inventory quantities, as it involves counting the actual items on hand, ensuring accuracy beyond records or systems.

To Accurately Determine Inventory Quantities, a Company Must