In a perpetual inventory system,the physical count of inventory ________,
A) serves as a check of the perpetual records
B) captures transactions that are not recorded by the electronic system
C) establishes the correct amount of ending inventory for the financial statements
D) All the above statements are correct.

Question

Quizplus · Accepted Answer

In a perpetual inventory system, the physical count of inventory serves multiple purposes: it checks the accuracy of the perpetual records, captures transactions that might not have been recorded by the electronic system, and helps establish the correct amount of ending inventory for the financial statements.

In a Perpetual Inventory System,the Physical Count of Inventory ________