Safeguarding inventory and proper reporting of the inventory in the financial statements are the reasons for controlling the inventory.

Question

Quizplus · Accepted Answer

Safeguarding inventory ensures that it is not stolen, damaged or misused, while proper reporting of the inventory in the financial statements ensures that the company's financial position is accurately reflected. Control over inventory helps achieve both these objectives.

Safeguarding Inventory and Proper Reporting of the Inventory in the Financial