The inventory physical count gives the company inventory quantities that must be priced to arrive at the ending inventory balance reported on the balance sheet.

Question

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The physical count of inventory provides the company with actual quantities of inventory on hand, which must then be valued in order to calculate ending inventory for reporting on the balance sheet. This valuation is necessary in order to determine the cost of goods sold and gross profit for the period.

The Inventory Physical Count Gives the Company Inventory Quantities That