Which of these occurrences could account for a difference between the total value of inventory in the accounting records and the total value of inventory as per the stocktake?
A) inventory stolen from the storeroom
B) cost of sales transactions not recorded in the accounting records
C) some inventory items not counted in the stocktake
D) all of the above

Question

Quizplus · Accepted Answer

All of the given occurrences could account for a difference between the total value of inventory in the accounting records and the total value of inventory as per the stocktake. Inventory theft would mean that the actual physical inventory is less than what the accounting records indicate. If cost of sales transactions are not recorded in the accounting records, it would mean that the cost of goods sold is understated, which would result in an overstatement of inventory. Similarly, if some inventory items are not counted in the stocktake, it would result in an understatement of inventory.

Which of These Occurrences Could Account for a Difference Between