Physical inventory counts are
A)only necessary for periodic systems.
B)only necessary for perpetual systems.
C)necessary for periodic and perpetual systems as part of internal control.
D)not necessary at all if a company has an appropriate accounting system.

Question

Quizplus · Accepted Answer

Physical inventory counts are necessary for both periodic and perpetual systems as part of internal control to ensure that the company's recorded inventory balances match the actual quantities on hand. Having an appropriate accounting system does not eliminate the need for physical inventory counts as it is important to have a physical count to confirm the accuracy of the accounting records.

Physical Inventory Counts Are