In inventory systems, when the actual quantity and the accounting records quantity are compared it is referred to as:
A)Perpetual inventory
B)Inventory resolution
C)The physical inventory reconciliation
D)Periodic inventory

Question

In inventory systems, when the actual quantity and the accounting records quantity are compared it is referred to as:
A)Perpetual inventory
B)Inventory resolution 
C)The physical inventory reconciliation
D)Periodic inventory

Quizplus · Accepted Answer

The comparison of the actual quantity of inventory items with the accounting records is referred to as the physical inventory reconciliation. This process is typically carried out periodically, usually annually, to ensure that the accounting records accurately reflect the actual inventory on hand. This is an important step in maintaining accurate inventory data and ensuring that financial reports are correct. The other options, perpetual inventory and periodic inventory, refer to different inventory tracking methods and do not specifically involve a comparison of actual and recorded quantities. Inventory resolution is not a commonly used term in inventory management.

In Inventory Systems, When the Actual Quantity and the Accounting