Which of the following is not a true statement concerning a perpetual inventory system:
A) Physical inventory is counted from time to time primarily to verify the inventory records.
B) Detailed subsidiary records are maintained and the inventory account is a control account.
C) Information concerning the physical quantity of goods on hand is available from the accounting records at any time.
D) Shrinkage cannot be measured directly.

Question

Quizplus · Accepted Answer

Shrinkage can be measured directly in a perpetual inventory system as it tracks inventory transactions in real-time and updates inventory records immediately, allowing for the detection of shrinkage as soon as it occurs.

Which of the Following Is Not a True Statement Concerning