Physical counts of inventory:
A) Are necessary to adjust the Inventory account to the actual inventory available.
B) Requires the use of hand-held portable computers.
C) Are not necessary under the cost-to benefit constraint.
D) Are not necessary under the perpetual system.
E) Must be taken at least once a month.

Question

Quizplus · Accepted Answer

Physical counts of inventory are necessary to adjust the Inventory account to the actual inventory available. This helps ensure the accuracy of the financial statements and is required for both periodic and perpetual inventory systems. Hand-held portable computers can be used to facilitate the counting process, but they are not always necessary. The frequency of physical counts depends on a company's internal control policies and procedures, but they should be taken at least once a year.

Physical Counts of Inventory