It is frequently possible to test the physical inventory prior to the balance sheet date when
A)there are accurate perpetual inventory master files.
B)year-end sales are small.
C)the internal control system is no better at year-end than at an earlier point in time.
D)client counts inventory at interim dates.

Question

Quizplus · Accepted Answer

Testing the physical inventory prior to the balance sheet date is feasible when there are accurate perpetual inventory master files, as they allow for reliable tracking and reconciliation of inventory levels throughout the year.

It Is Frequently Possible to Test the Physical Inventory Prior