Physical counts of inventory
A) Are not necessary under the perpetual system
B) Are necessary to adjust for shrinkage
C) Should be taken at least once a month
D) Are necessary to adjust for shrinkage and should be taken at least once a month
E) Are not necessary under the perpetual system and should be taken at least once a month

Question

Quizplus · Accepted Answer

Physical counts of inventory are necessary to adjust for shrinkage, which includes theft, loss, and errors in counting or recording inventory. These counts help ensure the accuracy of inventory records, regardless of whether a perpetual or periodic inventory system is used.

Physical Counts of Inventory